Tax Advice for UK Contractors in an Unpredictable Economy

The current economic turbulence that has hit the UK is set to affect the job market as a whole, and there is speculation that this may have a ripple effect on individual contractors. It is during these trying times that expert immigration and financial services group 1st Contact urges contract workers across all industries to wise up in order to continue harnessing the inherent benefits that contracting can bring.

Contrary to popular speculation about the potential shrinkage of the UK contracting market, 1st Contact presents an alternative scenario for potential contractors.

According to 1st Contact, the attractiveness of embarking upon a contracting career in the UK includes: flexible hours, higher pay and a variety of job descriptions and roles. The down side however is the unpredictability of a sustained income. It is predicted that during these times of economic uncertainty that most UK citizens will be leaving the contracting field and opting for more secure, permanent positions. This presents copious opportunities for foreign nationals to take advantage of the gaps that are predicted to present themselves in the UK contracting market. In view of this, 1st Contact is of the belief that there will be a solid stream of demand for specialist contractor skills in the UK, for foreign nationals to take advantage of.

Although in an economic downswing the only certainty is uncertainty, 1st Contact offers a service whereby UK based contractors can increase their take home pay, through the clever management of their tax affairs. Any additional tax savings during tough economic times is set to ease the stress and strain of financial burdens brought upon by a waning economy.

This service presents an opportunity for individuals to still maintain the flexible life-style that contracting brings, whilst also enjoying the payroll benefits of permanent employees.

The table below is an indication the % of take home pay that can be generated from reducing your tax liability. In order to benefit the most from this service it will be essential to identify as many tax deductable expenses as possible. For more advice in terms of how to identify tax deductable expenses and benefit the most from this service, please contact one of our 1st Contact Umbrella consultants:
New Clients: 0808 178 8634
Existing Clients: 0808 168 0459
Email: Umbrella1C@1stcontact.com

£400 per week PAYE
£50 claimable expenses per week

PAYE
Taxable Income

£ 20,800
£ 20,800

Monthly Take Home Pay


Weekly Take Home Pay

£1,347


£311

% take home pay as per taxable income 78%

Limited Company
Taxable Income

£ 23,462
£ 23,462

Monthly Take Home Pay


Weekly Take Home Pay

£1,580


£365

% take home pay as per taxable income 81%

International Umbrella
Taxable Income

£ 23,462
£ 19,807

Monthly Take Home Pay


Weekly Take Home Pay

£1,506


£348

% take home pay as per taxable income 91%

UK Umbrella
Taxable Income

£ 23,462
£ 18,262

Monthly Take Home Pay


Weekly Take Home Pay

£1,417


£327

% take home pay as per taxable income 93%

£800 per week PAYE
£50 claimable expenses per week

PAYE
Taxable Income

£ 41,600
£ 41,600

Monthly Take Home Pay


Weekly Take Home Pay

£2,543


£587

% take home pay as per taxable income 73%

Limited Company
Taxable Income

£ 46,925
£ 46,925

Monthly Take Home Pay


Weekly Take Home Pay

£3,125


£721

% take home pay as per taxable income 80%

International Umbrella
Taxable Income

£ 46,925
£ 42,213

Monthly Take Home Pay


Weekly Take Home Pay

£2,790


£644

% take home pay as per taxable income 79%

UK Umbrella
Taxable Income

£ 46,925
£ 39,062

Monthly Take Home Pay


Weekly Take Home Pay

£2,613


£603

% take home pay as per taxable income 80%

£800 per week PAYE
£100 claimable expenses per week

PAYE
Taxable Income

£ 41,600
£ 41,600

Monthly Take Home Pay


Weekly Take Home Pay

£2,543


£587

% take home pay as per taxable income 73%

Limited Company
Taxable Income

£ 46,925
£ 46,925

Monthly Take Home Pay


Weekly Take Home Pay

£3,170


£732

% take home pay as per taxable income 81%

International Umbrella
Taxable Income

£ 46,925
£ 39,613

Monthly Take Home Pay


Weekly Take Home Pay

£2,862


£660

% take home pay as per taxable income 87%

UK Umbrella
Taxable Income

£ 46,925
£ 36,757

Monthly Take Home Pay


Weekly Take Home Pay

£2,697


£622

% take home pay as per taxable income 88%

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