| There are a number of ways that your business | | | | Personal Trading Companies |
| can reduce the time, cost and effort of managing | | | | To operate a PTC you need to become the sole |
| your contractor payments and these include; | | | | director of the limited company so that you are in |
| - Construction Industry Scheme | | | | control. A range of specialist companies can help |
| - Personal Trading Companies | | | | you set up and manage your limited company. It's |
| - Umbrella Solutions | | | | an easy, hassle-free way of working through |
| - Specialist Payroll | | | | your own limited company, whilst you retain |
| Construction Industry Scheme | | | | control the entire time. |
| For each week that you work approved | | | | Once a PTC is formed it is difficult to dissolve the |
| timesheets are collected, and pay rates obtained | | | | company; therefore this method of working is |
| direct from your employment agency. Payments | | | | designed as a long-term solution. However, it will |
| are processed according to your CIS tax status, | | | | not restrict you in any way, and you are still free |
| making payment direct to your bank account on | | | | to change employment agencies, etc. For this |
| the Friday following your working week. For | | | | reason PTCs are not suitable as a short-term |
| example, for a timesheet that ends Friday 5th, | | | | solution. |
| the payment will be made on Friday 12th. | | | | Umbrella Companies |
| As a self-employed individual you will be | | | | An ‘Umbrella' company is simply the company |
| responsible for your National Insurance | | | | that you join as an employee through which your |
| Contributions; when you sign up for | | | | wages are paid. The umbrella company is |
| self-employment you'll be asked to pay NI by | | | | responsible for paying your PAYE tax and NI |
| direct debit - the easiest way to ensure you're | | | | contributions direct to HMRC. If you join a third |
| up-to-date with contributions and eligible for NI | | | | party umbrella company you'll be able to offset |
| benefits. | | | | your business expenses on a weekly (or monthly) |
| Being paid through your own company as a | | | | basis; this can give you a major benefit compared |
| self-employed worker gives you the same tax | | | | with PAYE where no weekly (or monthly) offset |
| benefits available to all other entrepreneurs. | | | | is possible. Employed candidates can be paid |
| You’ll have the flexibility to take your income | | | | through the umbrella company and get early tax |
| as a combination of fees and dividends, thereby | | | | relief for business expenses. |
| reducing the overall taxation on your income. In | | | | Specialist Payroll |
| addition, you’ll be able to offset your business | | | | Many accountancy and payroll companies offer a |
| expenses on a weekly basis, maximising your | | | | specialist Payroll service, if your needs are more |
| cash flow and take- home pay. | | | | complex, or you need a more personal service. |