Business start-ups are a very popular way to get into employment at present, and self-employed business start-ups are undoubtedly at their highest ever levels within the UK. Self-employed professionals have done wonders when it comes to reducing the undesirable unemployment statistics that have become all too commonplace in recent years, so it’s fair to say that the government should be doing all that it can to help such people. Sometimes though, it seems as if the desire to help is there, but the ability to make the most helpful decisions is not.
According to Contractor UK, a mismatch has been identified when local MPs get involved with helping business start-ups, as a ‘generally poor understanding of policies’ is far too widespread in society. Many of the introductions that are designed to boost start-ups apparently display ‘a surprising lack of knowledge’, and the fact is that, although many MPs are looking to assist entrepreneurs, they lack the expertise in this area to understand exactly what is needed.
Clearly, more information needs to be broadcast among MPs in this area, otherwise well-meaning individuals may continue to implement help-measures that, quite simply, are not all that helpful. Half of all MPs in the Contractor UK study were guilty of such failings, so it’s not exactly an uncommon issue. Many entrepreneurs look to MPs to bring them up to date with all of the latest developments and policies, and at present these politicians are frequently ill-equipped to do so.
Tips for Contractor Start-Ups
Here at ICS, we come into contact with many entrepreneurs within the world of contracting, and so we’re well used to lending a hand whenever they need advice. Obviously, there’s an awful lot that can be said with regards to contracting business start-ups, far more than can be said in the scope of a single article in fact, but here are a few notable (and hopefully useful) tips for you to bear in mind.
- Be flexible. Flexibility is the greatest strength of a contractor. Learn new skills wherever possible, investigate new opportunities, associate with different companies and work whenever it is most convenient. Such flexibility will consistently keep you in work.
- Choose the right company structure. In terms of pure tax-efficiency, a contractor limited company is the way to go, but if you’re looking for the most hassle-free approach for short-term roles then consider an umbrella company. Both are easy structures to make use of.
- Remember IR35. An absolutely notorious piece of legislation, IR35 is a consistent pitfall for contractors, and you should treat IR35 compliance as a matter of priority. You’ll naturally want to maximise your revenue, but you’ll never do that until you get to grips with IR35.
- Find a contractor accountant. Accounting is an important facet of any business, but doing it yourself (on top of your ‘actual’ duties) will take up a large amount of time that you probably can’t spare. Save time and maximise efficiency and accuracy by outsourcing it instead.
At ICS, our team of experienced specialists can assist you with your accounts, help you to get your company structure right, guide you to an understanding of IR35 and more. If you’d like to find out more about our services and how we can help you, then don’t hesitate to contact us now by calling 0800 195 3750 or emailing firstname.lastname@example.org. Alternatively, if you’d just like a bit of instantaneous good advice, then don’t hesitate to give our Guide to Contracting a read through, as it contains lots of useful pointers for anyone who is new to contracting. We’re always happy to help!