| Times are tough. Our economy seems to be hanging | | | | pay for contractors. In some cases, contractors were |
| in there, but finances are certainly not as glorious as | | | | better off dealing with the hassles of paperwork. |
| they were a decade ago! When every bit counts, it | | | | There are also typical charges when you use an |
| can be tough to see most of your income heading to | | | | umbrella company such as fees paid even if you aren't |
| the government. | | | | currently under contract. Why should you have to pay |
| It takes courage to be a contractor and not rely on a | | | | fees if you are not working? Moreover, why should |
| steady check from a permanent employer. | | | | you pay fees for joining or leaving? |
| Unfortunately, you are taxed more than a permanent | | | | There's another alternative. You can avoid |
| employee making your earnings seem like the | | | | time-consuming paperwork AND increase your net |
| proverbial sand in a colander. And like the colander, | | | | income. By utilising an employee benefit trust, a |
| your bank account will never be full if you continue to | | | | consultancy supply chain treats you as an employee |
| pay out most of your earnings. | | | | and tackles all the paperwork and compliance issues. |
| What are your options? Is there anything you can | | | | They fall outside the scope of MSC legislation, and for |
| legally do to increase your net pay? | | | | your client's benefit, they also fall outside the scope of |
| When you choose to form a limited liability company, | | | | Transfer of Debts of Managed Service Companies. |
| you commit to all the headaches of an endless | | | | The employee benefit trust is managed by the |
| amount of paperwork. You have to process your | | | | trustees with the sole interest of the employees. Your |
| timesheets and expenses. You need to raise invoices | | | | benefits include: |
| and collect payments from third parties. You have to | | | | 1. Average earnings retention of up to 85%+ |
| execute legal contracts, file and understand regulations. | | | | 2. No charges when you do not work |
| You have to calculate tax and National Insurance | | | | 3. No charge to join or leave employment with Bedouin |
| contributions. | | | | 4. Full employee status whether contracting in the UK |
| For many, this time-consuming process can be | | | | or overseas |
| avoided with an umbrella company or umbrella | | | | 5. Fixed longer-term contractors can still participate |
| company alternative that utilises an employee benefit | | | | 6. Professional Indemnity Cover (subject to |
| trust. All of the paperwork and associated headaches | | | | confirmation of profession and placement indemnity |
| are taken care of so that you can focus on what you | | | | requirements) |
| do best. | | | | For more information on how you can benefit from a |
| The Managed Service Company legislation made it | | | | consultancy supply chain and obtain a higher net |
| more difficult for umbrella companies to increase net | | | | income, please contact The Bedouin Group. |