The Benefits of Finding a Quality Personal Services Company

Beginning on April 6, 2007, legislation will require Umbrella and Composite companies who work with the income of freelance contractors to PAYE with absolutely no deduction allowed for some of the traditional expenses like the “home to work” expense. Dividend payments will not be allowed, either. This vital information is sourced from publication H M Revenue & Customs, tackling Managed Service Companies- December 2006.

What does this mean to freelance contract workers? It means that it’s time to switch to a quality Personal Services Company, if you haven’t done so already, as these changes in the law do not affect these types of companies, only those that operates as umbrella or composite companies. It means that if you want to keep the deductions you deserve, you need to make the move now before you lose them.

Bit it’s not just about the deductions, for an experienced personal services company can provide you, as a contractor, with more services and benefits than you might have thought possible. If you’ve never had such a personal service company, think about all of the extra time you would have to do the things you enjoy and look for additional work instead of dealing with payroll, invoices and other accountancy issues. Think about the time you spend creating invoices, chasing after those who hired you and your service, and calculating tax and other finances.

So, why haven’t you hired one yet? Are you concerned about the sometimes-stagnant pay when you’re employed in such a freelance position, such as an IT worker or engineer? Rest assured that the best personal services companies would not charge you when you’re not working.

Here is a basic scenario of how this works:

• Create an account with a personal service company of choice.

• Submit any timesheets and/or expenses to your personal service company from the company that contracted you.

• Submit any claims from your own company.

• Allow your personal service company to create any and all necessary invoices, calculates all information and either deposits the funds into your personal bank account (if you allow them to), or will create a payslip for you.

• Your company of choice will notify you when their work is complete.

While all such personal services companies will differ, the better ones will allow you to be the boss of your operation, as they will work for you. Charges and fees of your personal services company will vary depending on your specifications, needs and required services. Whatever your case may be, be sure that your personal services company has the experience and knowledge to provide you with the best service for you and your freelance contract work