Tag: freelancer

Why are Freelance workers so popular with businesses?

Why is it attractive to use Freelancers?

  1. Skill is more important than location in many business sectors – we live in world where the internet can allow you to work with anyone at anytime, you can now track down the best person to work with even if they live thousands of miles away
  2. Lower fixed costs – Using Freelancers will lower your fixed costs (in similar way to Zero Hours Contracts), you employ them for a specific project and only pay for what you need so there isn’t any surplus capacity
  3. Tax advantages – Freelancers run their own business and that means they pay less tax than employees. Employers save tax too, such as Employers NI.
  4. Competitive Advantage – You can put together a team for a contract rather than finding contracts that fit your workforce, this means you can hire the best.
  5. 110% Commitment – A Freelancers success and future work depends on them performing to the highest level on every contract, failure is not an option for a successful contractor.

 

invoice2go_freelance_stats_x2_v03

Graphic created by https://invoice.2go.com/en-us/
https://invoice.2go.com/en-us/

steve@bicknells.net

5 reasons why Freelancers are taking over the world

MISSION: IMPOSSIBLE

Last week Zero Hours Contracts were in news, the BBC reported on 5th August 2013:

The Business Secretary Vince Cable fears zero-hours contracts are being abused after research suggested a million people could be working under them.

I think that employers may be tempted to switch from Zero Hours to Freelance Contractors.

PCG published this story on 3rd July 2013:

Demand from UK businesses for contract workers is continuing to rise in 2013, which could be good news for freelancers looking to get their foot in the door on a lucrative new project.

Why is it attractive to use Freelancers?

  1. Skill is more important than location in many business sectors – we live in world where internet can allow you to work with anyone at anytime, you can now track down the best person to work with even if they live thousands of miles away
  2. Lower fixed costs – Using Freelancers will lower your fixed costs (in similar way to Zero Hours Contracts), you employ them for a specific project and only pay for what you need so there isn’t any surplus capacity
  3. Tax advantages – Freelancers run their own business and that means they pay less tax than employees. Employers save tax too, such as Employers NI.
  4. Competitive Advantage – You can put together a team for a contract rather than finding contracts that fit your workforce, this means you can hire the best.
  5. 110% Commitment – A Freelancers success and future work depends on them performing to the highest level on every contract, failure is not an option for a successful contractor.

So is it a mission impossible for salaried employees to make the transition to Freelancers

steve@bicknells.net

Consultants beware of IR35 – use the QDOS Model Contract (Free)

IR35 came into existance in 1999,  it was created to prevent workers previously employed from creating a limited company and then benefiting from lower taxes and national insurance through the use of dividends and expenses.

HMRC believed that it would generate £220 million a year in National Insurance Contributions and £80 million in Income Tax, but it has actually only generated around £1.5 million a year and HMRC have brought a number of cases before the courts, the latest being MBF Design Services Ltd v Revenue and Customs (2011) and ECR Conculting Ltd v Revenue and Customs, the taxpayer was successful in both cases.

I was reading an article in Accounting Practice about the MBF Design case and HMRC assisted a Foreign Airbus UK employee to prepare his statement but apparently because the employee struggled to read the statement or be examined on it the tribunal were unconvinced.

I have always found QDOS to be an invaluable source of help in the field of IR35 and you can download free guides and contracts using this link

http://www.qdosconsulting.com/freelancer-contractor/free-guides-templates

steve@bicknells.net