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Money....The Most Important Factor!

Nearly all agencies offer the choice of 2 systems, the first being PAYE and the second is tied to the employee (Us) providing a Boni Fide Limited Company. Now to many the 2nd option seems complicated to set up but, if you follow the guidelines you will have few issues. PAYE speaks for its self but I would mention one thing about rates. The rate quoted on PAYE is given before Tax and Nat Ins is taken off, where as the 'Ltd Company' rate is what you get paid into the bank. Rates are always quoted by the hour and do not include overtime rates, which differ greatly depending on the contract.

Limited Company

Setting up a Ltd Company is easy if you follow the rules. A few years ago the whole system was open to abuse and riddled with 'Loop Holes', but the governments guidelines are far more clearer now (so they say!). Get a good reliable accountant (they are out there if you search!) or there are some companies who specialize in the whole deal, but you pay a monthly fee for them to manage your accounts. The magic word here is 'manage'. Its easy to forget to keep all your receipts, but no matter what you purchase keep them all and, at the end of the year, your accountant will produce a Financial report for your company. It is not difficult to run a company and its far more beneficial to you, as long as you stick to the rules! There is soon to be some serious changes to the IR35 tax system.

Goto Nologerlimited to see the latest information and check out there service. Looks comprehensive and all above board

The Contract

What a lot of people forget is to read the small print in any contract they enter into. Most contracts produced by any Agency tend to be similar but read each one very carefully! As for any notice to quit its always best to stick to the period stated in the contract. Most require at least 24 hours for you to work after giving your notice, but the customer can usually ask you to leave there site immediately, if they so wish. Sticking to the notice period prevents you 'Burning your Bridges'.

The changes to the IR35 system are soon to be brought in. Here is some information I recently received from airmech.co.uk

"In view of recent changes in tax laws for contractors here’s some info from No Longer Limited on what we consider to be the best way ahead to maximise the pounds in your own pockets.

As a contractor what is the best way of being paid? An agency payroll is straightforward, however does not give you the best returns, a Limited company can be a nightmare sorting out all the associated paperwork, and intermediary companies can pay via dividends which whilst giving you more money can leave you with unexpected tax bills and are currently being looked at by the government.

We believe that No Longer Limited is the best solution for contractors. With insurances specific to the aviation industry, contractors can be guaranteed compliant, safe payment solutions whatever their IR35 status. No Longer Limited can tell you your IR35 status, and provide you with suitable solutions unaffected by current government proposals. With advantages such as increased take-home pay, reduced paperwork, tax return service, and a money saving Privilege Scheme (featuring companies such as the AA, Enterprise Rent a Car, Figleaves, and Holmes Place), more and more aviation contractors are turning to this forward-thinking payment solutions company.

No Longer Limited’s experts can be contacted on 0800 848 8888 alternatively you can find out more at www.nolongerlimited.com.

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