We don’t want you having to go to different organisations for different things when its perfectly possible to get the best of everything, right under one roof. We’ll explain some of the Thornberry services here, but if there’s something else you’d like, just get in touch.
Umbrella Company services
An umbrella company will be a better option financially than being paid simply through an agency’s payroll for most people, and this is because as a contractor working at many temporary placements, you can claim back your expenses through an umbrella company (don’t worry, we’ll fill you in on all of this and help you as much as possible). Expense payments made to you in this way are not subject to PAYE and NI, and so the portion of your income paid to you in this way is tax free. As a temporary employee of a recruitment company, the same rules don’t apply and so you will be better off. it's worth noting though that in the most part, contractors will be better off financially by running their own limited company , so if you’re main concern is the money in your pocket, you should consider running your business through your own company.
Limited Company Administration (Personal Service Company)
For any contractor, the limited company option simply makes the most sense in terms of the money in your pocket. You need to consider IR35 when choosing your payment method, but we’ll help you with that from the outset. As the owner of your own limited company you are entitled to make the most of the profits you generate through your business. Profits can be paid to you as dividends, and dividends are a more tax efficient way to receive your income than purely as salary, most importantly because dividends are not subject to national insurance contributions (that can mean a saving of up to around 20%). Also, as a contractor who is incurring legitimate business expenses, you can deduct these from your own limited company, which again reduces your tax liability and can do so considerably – even for items such as your mobile phone bill or posting us any documentation.
Finally, when running your own business in this way, you may well be able to reclaim some of the VAT back on your spending, or having sought advice from a qualified accountant such as us, there may be other options available to you that will also save you money. We will take care of all of the more difficult stuff such as admin and the legal stuff that Companies House and HMRC need, as well as helping with your business bank account and insurances.
Running a business as a self-employed sole trader is one of the oldest and most traditional methods available to people running their own businesses. Typically in the contractor market, people opt for either limited company (PSC) or an umbrella company. But this is a third choice, if you like the benefits associated. We can help you register with HMRC as a self-employed person, and receive your income gross. You pay your taxes at the end of the tax year, and some in account of your next trading year. With us working with you every step of the way, it can be an easy way to run your business and the sole trader option is good for anyone who wants increased cash-flow, and who is good at keeping money aside to be paid at the end of the year, especially if your permanent workplace is your home.
In addition to the obvious benefits of receiving your funds up front, self-employed people are able to offset their expenditure for a wide range of expenses relating to running your own business, which we’ll help with too. Self-employed people also make considerable National Insurance savings, especially when compared with an Umbrella Company (you’re often up to 15% better off). Finally, depending on your individual circumstances, as a self-employed person you may be able to benefit from VAT savings too.
Construction Industry Solutions
The Construction Industry Scheme (CIS) applies to people involved in mainstream construction work and if this applies to you, we can help. We will carry out all of the admin and tax deductions for your assignment, and you will find the assignments and decide the rates. You need to register with HMRC for CIS status, and once you have your reference number, we’ll pay you deducting the taxes that HMRC decide are appropriate (usually 20%). We’ll also help you with your National Insurance registration and payments. As a self-employed contractor, you will still be able to offset your business expenses against this tax, but you’ll do it at the end of the year and may well receive a rebate.
Firstly, IR35 isn’t applicable to everyone, so you might not need to worry at all. If you are using Thorberry’s Umbrella Company, you are a fully employed member of staff, and so IR35 isn’t a concern. For our other services, depending on your payment options, it may be something that we need to think about.
You may well have read lots about IR35, and the good news is that our team have years of experience in this area, and we have built robust procedures and undergone serious training, meaning that you can be assured that you’re receiving the best service that is available.
We provide an assessment service before the start of each new contract, and this will include a discussion based on your working circumstances, and full contract reviews, and suggestions as to where a contract may need amendments. We will keep up to date with any changes that HMRC announce, and will contact you again if we decide that you may need to think a little bit differently.
Self-Assessment Tax Return
Anyone who is using an employed service, such as an umbrella company, usually doesn’t have to complete a self-assessment tax return. Perople who are company directors, partners in a partnership, non-resident or non-domiciled, who have capital gains, who are self-employed, who have investment income or who have rental income will probably have to complete one, and that’s where Thornberry will help.
It doesn’t matter how complicated your tax affairs are, under your instruction we’ll help you complete and file the form on time, and will look at minimising your tax bill wherever possible. So remember to keep all of your receipts for your business expenses – they’re important (don’t worry, you can send us the shoe box full of them, and we’ll do the rest).
There are deadlines for completing your return, and HMRC will issue a fine if you don’t do it on time. They’ll also come back to you if there’s anything they’re not quite sure of, or if there’s any anomalies that need investigating.
We’re experts, and our dedicated team use software that is recognised by HMRC to complete your tax returns. We’ll complete the return online, calculate the balance of tax for you (or your rebate) and let you know when payments are due.
Here at Thornberry, we want you to be confident that we’re the experts, and there really is no substitute for expert advice when it comes to contracts. If you don’t seek expert advice and you select the wrong kind of service for your contract circumstances, that bill from HMRC could be £100,000 – we’re here to help you get on the right footing. When you sign up, we’ll take you through what we need to get moving, and also any particular bits and pieces that are important to you in terms of the specifics of your contract. We’re on hand all the time though, and we’re not going to forget about you the moment that you’re our customer. Our expert teams of professionals are here every time you have a new contract or an extension, and to answer any questions you have in between.
There are some clauses that you’ll need to negotiate in a contract. This could include IR35 or basic rights as a contractor to a client, or it could include fundamental issues such as rates of pay, and penalties for non-completion. After all, you wouldn’t want there to be a penalty of £5000 for jumping ship part way through a contract, but guess what, we’ve seen examples of exactly that, and if you don’t negotiate them before you start, they will be legally binding. It’s a deal, and it won’t change, that’s how business works. Let us do the hard work for you – its all part of the service.
If you don’t want an all-encompassing package, Thornberry will set a company up for you to run yourself. A limited company in the United Kingdom is a corporation whose liability is limited by shares (Ltd), which is the most common form of privately held company. A limited company can be registered in England and Wales, Scotland or Northern Ireland. The registration of companies in the UK is done through Companies House. Thornberry have developed high quality formation services, which are cost effective and can have your company incorporated on the same day that you enquire with us.
As a contractor its important that you’re not exposed to risk from claims from your client or agency if you make a mistake, or if something happens that could lead to a claim. With Thornberry, as with everything else you don’t have to worry. We’ve got all the insurances we need to have in place, and when it comes to you as an independent contractor, we can help you with that too.
We have negotiated special rates on business insurance for our customers, that can save you a significant amount on your premiums. We will secure you the highest quality, best value insurance deal designed exactly around your requirements from the top insurers in the UK.
As we said before, we don’t want you to have to go to several different places to have to find what you need – at Thornberry, we make it our job to have everything you need to hand. This goes from assistance with personal and business bank accounts right the way through to working with financial advisors who have expert knowledge of the contractor market, and who arrange mortgages, tax efficient pension schemes and income protection. Whatever you need, we can help, and so just get in touch.
As a contractor, you may not have considered registering for VAT before. But just like any other small business owner, this is an option for you. HMRC have created several options for people running small businesses, and here at Thornberry, we’re happy to provide you with all the assistance you need to determine which, if any, is right for you. Depending on your occupation, it may be that the Flat Rate VAT Scheme provides you with financial benefits, and we can help with not only your registration, but the regular returns that you’ll need to complete too. And you don’t have to have your own limited company for the VAT registration to benefit you, self-employed sole traders can register too. We’ll do all of the hard work so that you can reap your benefits.
Outsourcing your payroll with Thornberry can mean improved efficiency, reduced risks, not to mention cost savings of up to 30%. When you actually think about the advantages of payroll outsourcing, there is little benefit in doing it in-house. Thornberry have developed a payroll service for organisations with small, medium or large payrolls, and it is a comprehensive, cost effective and reliable managed service that is run by payroll specialists with many years' payroll expertise.