Contracting 101: Why staying on top of your taxes will help your reputation

Google reviews
November 27, 2015

There are countless benefits to being a contractor – you get to set your own hours, you can take vacation when you choose, you can charge the rates that you think you are worth, and you are your own boss. You never have to worry about being laid off or fired, but you do have to ensure that your clients are happy, both during and after the transaction.

This is why, as a contractor or freelancer, you are only as good as your word. Your future in your industry depends on your reputation and reviews, and so it is imperative that you follow general best practices when it comes to contracting in the United Kingdom.

Remember – as a freelancer or contactor, you must make sure that you are always accounting for the tax that you must pay at the end of the year (not to mention setting aside money for retirement and/ or quiet periods in your work year). Neglecting to do this can result in some pretty dire consequences:

  • Huge fines or interest rates for late payment
  • A poor reputation in your industry – gossip spreads between clients and other contractors!
  • As a worst case scenario, even jail time
  • An end to your career

Don’t risk losing the value of your word – and losing your career. If you are unsure about whether you are doing your bookkeeping in an efficient way and correctly calculating the taxes you need to pay (or don’t need to pay!), you don’t need to feel embarrassed. After all, you are the expert in your field – sometimes you need to hire someone who is an expert in their field: a bookkeeper. Once you hire a professional bookkeeper you can relax in the knowledge that your taxes are taken care of – and so is your reputation

Tax

Resources

Recent Articles

650,000 extra pensioners pay tax for the first time this month

650,000 extra pensioners pay tax for the first time this month

Around 650,000 pensioners are facing the prospect of paying tax on their pensions for the first time from this month thanks to a big boost to the State Pension from April 6, and frozen tax bands that will drag them into the tax net, according to calculations from...

The end of the P11D is expected in 2026

The end of the P11D is expected in 2026

The P11D form which has been used to process ‘benefits-in-kind’ such as loans for season tickets and company cars will no longer be used after April 2026, as HMRC will ask businesses to deal with all these benefits through the payroll instead. HMRC announced earlier...

Cryptocurrency gains must be reported on self-assessments

Cryptocurrency gains must be reported on self-assessments

If you hold or invest in cryptocurrency, or even if your employer pays you in a cryptocurrency such as Bitcoin, you may need to declare this on your self-assessment form. For anyone who didn’t in the 2022/23 form which should have been filed before January 31, it...

Ready to join us?

Whether you’re a contractor, freelancer, or small business, Bright Ideas can help remove the burden of time-consuming and complex finances. We’ll draw on our years of knowledge and experience earned helping sole traders just like you.

When you choose us, you’ll be assigned a dedicated Account Manager who’ll provide one-on-one support that’s customised to your business. Communication is key, so we’ll always answer your questions or requests as soon as we can. In fact, we offer a same-day response guarantee for emails and calls received before 3pm.

Contact us to get started

Give us a call us or send an email today!

Looking to switch accountants?
We make the transition simple.

Does your current accountant give 1-to-1 support? Are they fast and thorough?
Slap-dash services hold businesses back, so try our experts instead.

Move to an accountancy service that goes the extra mile…

Start the conversation

Let’s make your finances Brighter

Call us Monday to Friday 9am - 5pm

0161 669 4221

Request a call back