All payroll companies offer similar core services: calculating payroll and tax obligations for each employee, printing and delivering cheques, and providing management reports. Payroll services can handle business for pay periods that run weekly, bi-weekly (every other week), semi-monthly (twice a month) or monthly.However, working with Recruitment & Contract Services Ltd (RACS) can help to ensure that you have no nasty surprises from the Tax Man at the end of the year, by making sure you are aware of how much is due and by helping you to reduce the amount that you have to pay him. We can do this by forming a Limited Company for you. You retain full control of the company, becoming the sole director, shareholder and only signatory on your company bank account. You can choose to earn the national minimum wage and are paid the remaining monies through dividends, this can allow you to earn up to 25% more than PAYE.
Alternatively, you could become part of RACS Collective (umbrella services) which was formed to employ contractors who wish to work on PAYE but want to take advantage of HMRC incurred expense allowances in order to reduce their PAYE burden. We have currently agreed dispensations with HMRC with regard to lunch expenses, travel, accommodation, subsistence, telephone and internet bills. This option will most certainly benefit contractors earning between £100 and £350 per week, it would typically suit those individuals who are caught by IR35 or those who do not want the responsibility of running their own Limited Company. Again this could result in a saving of up to 15% in comparison to PAYE.
There are many variations that have to be taken into account to keep the balance right between yourself and the Tax Man, therefore a payroll solution can be selected to provide you with the full support and remove the stress, whilst being adaptable to your ever changing circumstances. It’s about expert advice every step of the way.
For more information about RACS services please contact info@racsgroup.com or telephone 0845 604 0571. More Bloggs:
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