It’s an often used quote that the only two certainties in life are taxes and death. And famously, that great bootlegging villain, Al Capone got put away for tax avoidance since the authorities couldn’t pin anything else on him.
We may not be able to get away with tax avoidance and arguably that is one of the reasons the EU struggles. In Germany, Holland and other lowland countries, tax avoidance is deeply frowned upon.
On the other hand there are some nations where it is a practiced art form and people congratulate each other for doing this. Unsurprisingly, these are the countries that need bailing out.
We may condone tax avoidance but what we can do is use the rules to minimise payment. Very few PAYE employees can rattle off their Tax code and yet this is how their proportion of tax is measured.
When it comes to contract workers it can be difficult for them to work out their contributions from their pay.
Farming it out to some contractor payroll services can not only take away that pressure but with people with a knowledge of all the expenses allowances and other perks, can make this very cost effective.
The construction business along with IT specialists are very often working within a company and other fulltime PAYE employees have no idea. Having worked in the IT business as a contractor the uncertainty of the period of work was sweetened by the generous payments.
In most cases any sole trader or self-employed CIS should have formed their own limited company. The company is allowed expenses an individual may not be able to claim.
It is clearly in the interest of anyone in this position to have some professional payroll service that understands all the implications of self-employment.
A CIS umbrella allows contractors to claim the usual benefits of sick pay, maternity leave and full holiday allowances.
For builders and IT geeks it’s far better to let some professional accountants and tax experts take the strain of working this out.
For contractor payroll services http://www.aogresources.com/