Click here to sign up instantly · Want to talk to us? Call us on 0845 600 3974.

What options are available?

What options are available?

Our goal is to ensure our freelance contractors understand the payment structure options that are available and that we provide the best in industry advice, support and service, so you choose not only the best way to work but also achieve the optimum income.

Our ‘Guide to Contracting’ briefly outlines the four methods that are available to you when you decide to go contracting. Should you wish to find out any further information we would be delighted to hear from you, call an account manager on 0845 611 8017 or email info@mslpayroll.co.uk

1. Umbrella Company
2. Your Own Limited Company
3. Sole Trader
4. PAYE through the Agency

1. Umbrella Company:

An umbrella company is the ultimate solution for freelance contractors that don’t want to set up their own limited company or be self employed. In simple terms, if you are a contract freelancer looking for a way to work on multiple assignments without having the set up cost, responsibility and administration that comes with being a contractor, then an umbrella company is what you are looking for.

An umbrella payroll company act as an employer to contractors and freelancers who usually work under temporary contracts or assignments and provide a fully HMRC compliant employment service. An umbrella company provide a readymade invoicing method for freelance contractors and will invoice the employer or recruitment agency on your behalf, we also collect payment, calculate tax and National Insurance contributions and pay the net pay directly into the your bank account.

From only £9.96*per week (*gross fee £27.50) MSL Forza will ensure you enjoy the financial benefits and freedom of working as a contractor without the burden of dealing with all the administration, you will also be covered by our comprehensive insurance including; Employers Liability, Public Liability and Professional Indemnity. And because you are an employee of MSL Forza you are also entitled to statutory payments including sick pay, holiday pay, maternity and paternity leave and pension.

2. Your Own Limited Company

Setting up and running your own limited company can be very prosperous, the tax advantages of working through a limited company are greater than that of working through an Umbrella Company, Sole Trader or PAYE however establishing your own limited company is not a short term proposal and will require a great deal of commitment.  After you have set up a limited company and bank account you will have to ensure that the accountancy, bookkeeping, credit control, and insurances are taken care of whilst also ensuring you secure work and keep up to the minute with employment and tax laws.

From £75 per month, Forza Accounting, our Chartered accountancy service provide an all inclusive or bespoke accounting, financial and tax planning advice so we can do all the hard work for you in setting up and running your business while remaining fully HMRC compliant

3. Sole Trader / Self Employed

As a Sole Trader you don’t pay any registration fees but you keep all records and accounts, you keep all the profits but you are also liable for any debt which is incurred making it a risky option. When you become a Sole Trader you have to register yourself as self employed, raise money for the business from your own assets or a lender, make an annual self assessment tax return to HMRC and keep records showing your business income and full list of expenses. When you are a self employed, all profits are then taxed as income and you also pay fixed rate Class 2 and 4 National Insurance on those profits. Recruitment Companies are reluctant to pay Sole Traders and because of this they will ask for the contractor to be paid via an umbrella company or limited company.

From £75 per month, Forza Accounting’s Chartered Accountants do more than just the typical accountant. Forza Accounting will take on all of your day-to-day invoicing and bookkeeping, tell you exactly how much is owed to the tax man and how much you can take out of the business safely. Just let us know how much to invoice and when to raise them and record your expenses regularly. We will provide you peace of mind, expert advice so that you are running your business as efficiently as possible.

4. PAYE through Employer or Recruitment Agency

Some recruitment agencies and employers will take you on as a contractor through their PAYE payroll service. This option is the least beneficial option as the contractor pays tax in full and National Insurance contributions on all earnings. Through this option the contractor is not allowed to claim valid business expenses that can help reduce your tax and national insurance liabilities.