Clicky

Contractor Tax Guides

As a contractor, you must pay tax on the profits you generate from your contract work. I

If you are an umbrella worker, you are an ’employee’, and your umbrella company will calculate and deduct and tax from your income. You won’t have to submit any additional paperwork unless you have any untaxed income outside of your umbrella earnings.

As a limited company contractor, you are responsible for calculating the tax your business owes and paying any liabilities to HMRC on time.

Most limited contractors outsource these tasks to their accountants, however, you should be aware of how business tax works in practice.

Here are some of our most popular limited company tax guides.

  • Contractor expenses – what can a limited company claim against its Corporation Tax liability? And what costs are excluded?
  • National Insurance – what is it? – contractors are liable to pay Class 1 NICs on salaries. What are the current rates?
  • Guide to Corporation Tax – what it is, how to register, what are the deadlines, and how CT applies to limited companies.
  • Salary vs. dividends – what’s the optimum balance for limited company owners during the current tax year?
  • Value Added Tax (VAT) – what it is, how to register, and how it is collected? An overview of the various VAT options.
  • What are dividends? – most of your income as a company owner will be funded by dividends. What are they, and how are they taxed?
  • Dividend Calculator – work out your tax liability at self-assessment time, courtesy of this useful online calculator.