Contracting gives you plenty of options in terms of how you choose to get paid and pay tax – our top tips could help push you in the right direction.
If you're new to contracting, running a limited company could be daunting, so a good idea could be to use an umbrella company.
They're really simple to join, easy to use and are perfect for short term contracts. Getting paid this way also means you can claim tax relief on any expenses you incur during your contract.
But if you're a contractor already, you might want to consider using a limited company. They are without a doubt the most tax efficient way of working. You can claim more business expenses and take home over 80 per cent of your top line.
Plus if you register your company for the Flat Rate VAT scheme, you'll get a monthly VAT credit – which you could use to offset your accountancy fees.
That could mean effectively getting a free accountancy service!
We hope that's given you enough helpful hints and you now know which route is right for you.