Financial services

Are you a supply teacher or a supply teaching agency seeking financial advice? Orange Genie Education help thousands of contractor’s to achieve their financial goals, have a look below at the different financial services we offer advice on... 

....The Orange Genie Mortgage and Re-mortgage Service. Working for an umbrella company? Don’t let your Contractor status affect your house search. It is possible to borrow based on contract rate alone rather than accounts and all within weeks of your very first contract. Competitive interest rates allow contractors to potentially save hundreds of pounds each month on a new purchase or re-mortgage of your existing loan. Save £500+ with fees-free advice for Orange Genie clients.

Purchase
Moving home can be stressful, especially if you have been turned down by lenders on your High Street because of your contractor status. You shouldn’t let this put you off finding your perfect home. ContractorFinancials are the original contractor specialist IFA and have spent over 13 years building relationships with some of the UK’s biggest lenders, negotiating specialist, contract-based underwriting and helping over 11,000 contractors to date.

The advisers have personally negotiated underwriting that enables you to borrow based on a multiple of your annualised contract rate alone. This saves the hassle of providing three years’ accounts that are traditionally required and may enable you to borrow more since affordability is calculated without taking into account any tax-saving measures your accountant may employ.

As busy supply teachers, we understand how busy you are therfore, ContractorFinancials will offer advice and complete the whole application process via phone, email and post, saving you the time and hassle of a face-to-face meeting and allowing us to complete on your purchase far more quickly. Your adviser will often be able to secure an agreement in principle within hours of your initial enquiry and you could be in your new home within 4-8 weeks. To apply for a contractor mortgage you will need a signed copy of your current contract, two forms of ID and recent bank statements. There is a wide range of mortgage options available so your adviser will tailor their search to your individual requirements and help you find the right mortgage rate with a contractor-friendly provider.

Remortgages

If your current mortgage term has come to an end and you have slipped on to the lender’s Standard Variable Rate (SVR) then you could potentially save hundreds of pounds a year on your repayments by re-mortgaging at a new rate. As well as reducing your monthly payments, you can also use re-mortgaging to release the equity that has built up in your property over time to provide a lump sum for use on home improvements, a business venture or whatever you choose.

Thanks to the Government’s Funding for Lending Scheme, lenders are currently introducing a wide range of low-rate mortgage options including mortgages at Loan to Values (LTVs) of 90%. If you haven’t looked around at the options available for a while then now may be a good time to enquire as there are a number of fixed and variable mortgages available at a record-breaking low rates.

If you are not tied to your current lender there should be nothing to stop you shopping around for the best re-mortgage offer, to get value for money. Competition has led to the development of mortgage products with greater flexibility to fit people’s lifestyles. For example, there are now products that allow payment holidays and overpayments without penalties. Some lenders offer specific re-mortgage packages, paying for legal and valuation fees, so all you need to do is compare monthly repayment costs (unless there are redemption penalties involved) and, ideally, re-mortgaging should save you money immediately.

The idea of switching mortgages can seem daunting for some, but the advisers at ContractorFinancials will take care of the whole process for you.

As with the home purchase service, Orange Genie clients pay no broker fees with ContractorFinancials for re-mortgaging, which will save you upwards of £500 compared with other mortgage brokers.

Financial advice is given by ContractorFinancials, which is a trading name of ContractorFinancials Ltd and is regulated and authorised by the Financial Services Authority.

To speak to one of our best advice team members, call 01296 468 483 

 

 

Eligibility
If you are aged under 75 and resident in the UK, you should be eligible to contribute tax efficiently to a pension. Most UK residents will also qualify for a state pension but this will only pay you £110.15 per week so contractors will usually supplement this state provision with a personal or company-funded pension to improve their future retirement income and save tax today.

Contributions
You can personally contribute up to 100% of the value of your salary. Company-funded pension contributions have no relation to salary, so whilst business owners may choose to draw a tax efficient, low salary to reduce National Insurance payments and which will limit the scope for personal investment, this need not limit your ability to reduce company and personal tax bills.

In good trading years a hefty Corporation Tax bill may potentially be reduced to nothing with a company pension contribution and your pension can also become a central plank of your business by exploiting the freedom to own commercial property if required. You can hold business premises via a Self-Invested Personal Pension (SIPP) or Small Self -Administered Scheme (SSAS) with the pension in turn charging your company rent, helping to inflate the size of the pension pot even further.

There is an annual limit which is regularly reviewed and for the tax year 2013/14 the maximum amount is £50,000, but this will fall to £40,000 in the next tax year. The lifetime allowance is currently £1.5 million, but again will fall to £1.25 million. Contributions above the annual and lifetime limit are allowed, but will be taxed.

Tax Relief 

As an incentive to save, the Government offers tax relief on contributions to a pension fund at your highest marginal rate, so for higher-rate taxpayers a £20,000 personal investment could cost just £12,000. Basic rate tax relief at 20% is applied directly by the Government to all contributions, but higher-rate taxpayers can claim further tax relief via their tax return each year.

If you make a company contribution to a pension then you benefit from corporation tax relief at 20% so the benefits are the same for basic rate taxpayers. For higher-rate taxpayers a personal investment even secures a marginally higher level of relief. However, company owners still invariably make company contributions to save the personal tax that may have been paid in the first place. As pension contributions are also outside of IR35, any subsequent investigation that finds you within this tax regime will not levy employee’s and employer’s NI on this proportion of your income that, in the eyes of the taxman, has legitimately been invested on behalf of you as a director.

The great news is that contractors can take a tax-free lump sum of 25% of the value of their pension as early as age 55, known as the Pension Commencement Lump Sum (PCLS). You won’t need to stop contributing to your pension after taking the PCLS and you are under no obligation to retire, so contractors nearing their 55th Birthday could potentially invest today, benefit from the tax relief and immediately withdraw 25% tax free. This represents a very tax-efficient method of transferring contract income into personal hands.

Financial advice is given by ContractorFinancials, which is a trading name of ContractorFinancials Ltd and is regulated and authorised by the Financial Services Authority.

If you would like to discuss pensions in more detail, give Genie Education a call on: 01296 468 483 

Insurance
As a contractor you will be enjoying many of the perks of being your own boss, but it is important to avoid the pitfalls that come from leaving full-time employment. There is a range of insurance options that will help you replace lost employee benefits.

Income Protection
If you are unable to work for whatever reason then there is little by way of employee sick pay to rely on. Income protection, also known as Permanent Health Insurance or PHI, can bridge the gap and help to cover your expenses until you are back on your feet again.

ContractorFinancials offer income protection plans that are tailored to your needs as a contractor. A typical plan will pay a tax- free monthly income following a certain period of illness, such as three months, and will continue to pay until you recover or reach your retirement age. There is even a policy that offers a one-day waiting period if you don’t have access to any savings to help cover your expenses. This essential insurance provides the peace of mind that you can maintain your lifestyle and protect your family should you be unable to work.

The advisers at ContractorFinancials understand your unique needs as a contractor and will ensure that key factors are taken into consideration when advising on your income protection policy such as the way you are paid, market instability, employment status and whether you work abroad. They will ensure that your plan is suitable for short-term contract workers and covers both salary and any future dividends in case your employment status changes.

There is an option to pay for Income Protection through your business as an expense and there are also specialist policies that can be based on your contract rate which can help protect more of your income if you are unable to work. An adviser can talk through the options available so that you can choose the right policy to suit your needs.

Life Cover
As a contractor you miss out on the life cover offered by a large employer so it is vital that a plan is in place to secure the future of your family should you die. ContractorFinancials specialise in finding the right insurance to suit your needs and aim to provide this essential cover at an affordable price. There are two main types of life insurance: Term Cover offers an inexpensive protection policy that lasts for a given period and will end when the agreed term is finished, whereas Whole of Life Cover protects you against death at any age. Despite being slightly more expensive than a Term Cover policy, it is often popular with contractors because of the long-term security that it provides.

One-man limited company contractors can fund life insurance through the business with no income tax or benefit in kind considerations thanks to a change in legislation that means smaller companies now have the chance to tax efficiently provide death in service benefits for their employees. Contractors using a one-man limited company can transfer the cost of life insurance to your business rather than fund the cost personally from your post-tax income. It may also be possible to have this payment treated as a business expense.

Unlike the traditional ‘Keyman’ insurance for small business owners, where any payout on death invariably belonged to the company and so the business or your dependents could ultimately be taxed upon receipt of the funds, with Relevant life cover the benefits won’t be liable for inheritance tax in most cases. This is because they are payable through a simple discretionary trust. The new product essentially works the same as the old pension term assurance, but does not affect your lifetime or annual pension allowances. So those freelancers with a large pension pot are still able to benefit from the lucrative tax relief on pensions contributions whilst your life cover contributions now offer you a further opportunity to save tax.

The good news is that even if you decide to hang up your contracting hat and return to permanent employment, you can still benefit from the tax savings by simply transferring your policy to your new employer. Your cover is kept in trust and this not only keeps the money safe from any liabilities that the company has but also makes the plan easier to transfer.

Critical Illness Insurance
The high stress levels that contractors sometimes work under can mean that they are more susceptible to conditions such as heart attack, stroke and cancer. Whilst it is hard to avoid these now common illnesses, there is an easy way to protect yourself financially if the worst should happen.

ContractorFinancials can help you to arrange a critical illness cover that will protect you from the financial consequences of falling ill, so that you can concentrate on getting better. This cover can do more than just settle debts or an outstanding mortgage; it will pay out a lump sum on diagnosis of a range of illnesses and help pay for medical bills, adjustments to your home to help you cope with the illness, or simply a holiday to recharge your batteries.

ContractorFinancials are Independent Financial Advisors regulated by the FSA so they are able to search the whole of the market to find the best cover for your needs. They only work with insurers that have a history of paying claims and offer an affordable cover for contractors for the duration of the policy.

Private Medical Insurance
Avoid NHS waiting lists and make a speedy recovery with private medical insurance. As a contractor you are reliant on being able to work for your income so an unexpected illness can really set you back. With private medical insurance you can avoid the potential hassle of NHS waiting lists, with high-quality treatment when you need it you can get back on site as quickly as possible.

ContractorFinancials have negotiated special terms for Orange Genie clients and their families on private medical insurance with WPA, a recognised health insurer that has won numerous awards in the field. With this experienced provider you can gain immediate cover as soon as you join and benefit from up to a 45% discount on premiums for the life of the policy. With WPA you have the freedom to choose your hospital and your premiums are guaranteed not to increase if you make a claim. Financial advice is given by Contractor Financials, which is a trading name of Contractor Financials Ltd and is regulated and authorised by the Financial Services Authority.

Whether you're a supply teacher or a supply teaching agency and would like to speak to someone at Genie Education regarding insurance protection, give us a call on: 01296 468 483 

If you are a parent, you will be only too aware of the cost of having your children looked after. 

Childcare Vouchers is a Government scheme aimed at helping working parents to afford quality childcare. Each parent who takes part in the scheme could save over £900* a year on the cost of childcare. 

We have carefully selected a partner who understands and cares about providing a quality service to our employees. The scheme is available to all employees.  

If you're a supply teacher or a supply teaching agency and want to find out a little more, give us a call: 01296 468 483 

Why Orange Genie Education?

We employ and pay thousands of supply teachers and education support staff every year. Our employment portfolio stretches over 10 years in the umbrella industry making Orange Genie Education one of the most trusted umbrella brands. With this in mind, there’s no wonder we have long lasting relationships with hundreds of recruitment agencies all over the UK. Upon joining Orange Genie Education you become an employee of ours benefiting from:

Single employer for all assignments

  • One payment for all different agency assignments completed in a week
  • Simplified and efficient taxation from single tax code
  • Guaranteed pay for the work completed
  • Continuous employment rights
  • Maternity and Paternity pay
  • Sick pay
  • Access to a workplace pension
  • Statutory rights
  • Improved personal credit references and rating
  • Save over £700 with Orange Genie Rewards

Reassurance our supply teachers are employed by an FCSA member that protects and supports contractors. Our aspiration is to improve the lives and wellbeing of supply teachers and education support staff.

Get started HERE with OrangeGenie Education and get paid on time every time >>

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