Nov
01
2010
Contractors with umbrella company should be aware of risks
Posted by Sarah Putt
IT contractors with an umbrella company have been told that they need to be aware of a number of factors when they set out in their career.
Gerry McLaughlin, writing for IT Contractor, said that accountants should be befriended as whatever trouble a contractor gets into, these professionals can help them get out of it or at least alleviate some of the damage.
"There is going to be at least one downturn during the time that you are a contractor. There seems to be about one a decade (usually during the first half of it) lasting around a couple of years. During that time you may be out of work for long periods. Ask your accountant how you should prepare for it," the expert stated.
He went on to say warn that the taxman is going to "try it on" in order to take more of the contractor's money.
This might be through the IR35 or Section 660, which makes it even more important to have a good relationship with an accountant.
Recently, Mr McLaughlin said that contractors with an umbrella company need to make sure that they read their contract carefully.
IT contractors with an umbrella company have been told that they need to be aware of a number of factors when they set out in their career.
Gerry McLaughlin, writing for IT Contractor, said that accountants should be befriended as whatever trouble a contractor gets into, these professionals can help them get out of it or at least alleviate some of the damage.
"There is going to be at least one downturn during the time that you are a contractor. There seems to be about one a decade (usually during the first half of it) lasting around a couple of years. During that time you may be out of work for long periods. Ask your accountant how you should prepare for it," the expert stated.
He went on to say warn that the taxman is going to "try it on" in order to take more of the contractor's money.
This might be through the IR35 or Section 660, which makes it even more important to have a good relationship with an accountant.
Recently, Mr McLaughlin said that contractors with an umbrella company need to make sure that they read their contract carefully.