budget-2016Today's Budget announcement did not bring too many surprises, or big changes, relevant to contractors and freelancers. Much of the speculation around pensions did not come to light this time around, and the bill is still underway regarding Elective Resolutions, and winding up limited companies tax-effectively.


Pension tax relief is one of the most valuable tax breaks available and every individual who is a UK resident, under age 75, can benefit. The government encourages this saving as a means to support retirement planning in a country with a growing older population, and subsequently pays part of your contributions in the form of tax relief.

contractors-freelancers-face-pension-choices Pensions are a particular area of tax planning that is ever-changing. In 2015, a couple of key announcements were made that will affect pension planning for contractors and freelancers in 2016, including a decrease in the Lifetime Allowance, and, a tapering of the annual pension allowance for high earners.

limited-company-best-to-save-tax As all contractors will now be aware, from April 2016, dividends will be taxed differently, and the limited company "owner director" will highly likely pay more tax than they do currently. The question many contractors and freelancers are asking is, "does it still pay to be limited, taking everything into account?".

contractors-cash-reserves-act-now Along with the changes to contractor dividend tax rules, that come into force from April 2016, the government are making plans to restrict any loopholes that could be used to avoid this extra tax, by targeting Member's Voluntary Liquidations (MVL's). Contractors need to be aware of the new rules to MVL's and there's a small window of opportunity to act before April 2016.

ways-to-pay-tax-bill As a contractor, you may or may not have tax to pay by 31 January.  Do you know the ways to pay your tax? Make sure you know the best way to pay your tax bill so you don't miss the deadline and incur any charges or interest.

new-dividend-rules-will-affect-contractor-tax The July 2015 Budget announced changes to the tax rules on dividends that will inevitably affect most contractors and freelancers that trade using a limited company. It is important to understand the current contractor dividend tax system in detail, the changes that are on the horizon, as well as consider the options available that may help ease the new tax position.