Most of us dream of taking it easy after a hard working life on PAYE, but there is a substantial number who look forward to the challenge of starting a new career as a contractor with the thought that you will no longer be chained down by an employer's every whim.

Working for yourself can be 'taxing'
However leaving the comfort zone of a life of full-time employment is a daunting prospect for many who have never had to organise their tax affairs before. In fact, the prospect of working for yourself, from a tax point of view, can, at least for some, appear very daunting.

But it need not be - providing that you understand the issues involved and use the right people to organise your affairs.

A new career - a new horizon
For many people, a change of working lifestyle offers a whole new prospect. However HMRC plays it quite tough these days and you have to be very careful that you play by its rules to avoid potential problems.

If you decide to ask JSA to handle your tax affairs, we will give you clear guidance on the appropriate tax regime that you should work under. =

Employed or self-employed?
It is no good simply deciding that you will be self-employed. The tax man decides that for you and will define you as an 'employee' if you cannot pass the following self employment test.=

The self-employed test
You will probably fail this test and will be taxed as an employee, if

• Your work is under the complete direction and control of your client;


• You take no financial risk in accepting the work;


• You do not act as though you were in business on your own account;


• You are not free to pick and choose where and when you work;


• Your contract specifies you as the worker and you are unable to substitute etc.

What do I do next?
If you already have an accountant, then discuss the matter with him or her before taking any action. Alternatively, you might wish to speak to one of our advisers who would be pleased to give you objective advice and to make all the necessary arrangements to set up your tax affairs in the appropriate manner for your circumstances, including forming a limited company if required or placing you in one of our managed umbrella companies.

JSA, which is based in Watford, Herts, has been catering for the self-employed since 1989. As one of the largest firms offering a devoted service to contractors both in the UK and overseas, we are currently helping over 5,000 clients to find the most tax effective solutions for their particular circumstances.

What our clients say?
"Can I just say what excellent service I've received from JSA. I'm impressed. I've not had one problem with payments and you guys have been enormously helpful over the past few months. Cheers".

"I would like to express my gratitude to you and your team for all you have done since I started my contractor-ship in England. You provide such a professional service but with a warm and human touch."

"The good news is that the tax inspector was totally happy with everything and had no issues or problems to report. Needless to say I am very happy too! After the Inspector had completed his work, he told me, (strictly off the record!), that he knew of JSA and I got the distinct impression that this was the main reason why he was happy to just give a "brief" look at the records. This seems to be a fine reflection on the quality of your work. Finally, let me just thank you personally once again for all you help over the last few days."

"Blame Chris for giving me your name! I am contracting with the same organisation as him at the moment and he spoke of you in glowing terms."

"Thanks for all your assistance. If the occasion arises I will use JSA again. I have already mentioned that I use your services when talking to another agency, and that was well received."

"The Inspector made a comment, "The Books are Perfect"

Contact JSA
In the first instance contact our Client Support Team at
JSA House
110 The Parade
Watford
WD17 1GB
Switchboard - 01923 257 200
Fax - 01923 47 47 47
Email - JSA@jsagroup.co.uk

Article provided by JSA Group
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The Editor