If you have your own limited company you will be the director and shareholder of the company. As such you will be fully responsible for:
- complying with all company and other statutory issues, including company law requirements to file accounts and returns to Companies House;
- the calculation and payment of VAT and corporation tax liabilities;
- payroll calculations and returns;
- company administration including raising all company invoices, running a simple accounting system to record transactions and appoint an accountant to deal with accounts, taxation and payroll matters on your behalf;
- ensuring that the necessary insurances are in place.
The Managed Service Company (MSC) legislation was enacted in the Finance Act 2007. There are uncertainties over the exemptions available for ‘Accounting Services’ that mean service providers who currently claim to be exempt from the legislation may be caught out. This chance increases the more that the provider involves themselves with helping you to run the company.
If you operate your own limited company and use the services of a provider to help with the running of the company who is subsequently found to be a provider of managed service companies, then the MSC legislation will also apply to you. This could result in you facing crippling bills for back dated tax, penalties and interest. If you are averse to risk and do not want to have to take responsibility for running your own company then, an umbrella company is right for you. The Smart Pay Umbrella offers:
- invoicing your agency/client for the hours you have worked and collecting payments
- calculating the tax and National Insurance contribution, deducting and paying it to the UK authorities
- making a net payment in a range of currencies into your personal bank account
- compliance with all company and other statutory issues, including company law requirements to file accounts and returns to Companies House
- calculating and making payment of VAT and corporation tax liabilities
- running payroll calculations and making returns and various other statutory requirements
- providing business insurance to meet claims made by your clients against negligence or service deficiencies
- business expenses can be offset against your gross earnings
Whether you are new to contracting or unhappy with your current provider, please get in touch with us so we can explain what we do, how it works and help you decide if it is the best choice for you.