Go Accounts specialise in dealing with small businesses , many of whom are locums, contractors, freelancers and interims. So if you’re new to contracting, you’re in the best possible place.

We constantly review our advice, legislation and procedures, making sure that we offer the very best range of services. And of course, that you’re paying exactly the right amount of tax.(and not a penny more)

So what are your options? If you land a job as a locum, contractor, freelancer or interim through a recruitment agency, they may offer you two different pay rates. One will be to work as an agency PAYE employee – the other, working through an umbrella company or your own limited company (LTD).


Your options

New to contracting? It can be daunting when you’re not sure what pay option is best for you.

Agency PAYE

This is where a recruitment agency takes you onto their books and pays you directly. They will deduct tax and national insurance, just like any other employer would. Some agencies will also accrue holiday pay for you, so that you still get paid when you’re off. Others will gross up your wages paid, by adding holiday pay into your regular wages .

When an agency pays you directly, they have to pay Employers National Insurance, being 13.8% extra in 2015/16. So, the cost of paying you, let’s say £15 per hour (including holiday pay) actually costs them £17.07. Choose to work for an umbrella company or through your own business and it’s likely the agency will pay the umbrella company or you up to the full £17.07, as they no longer have to cover the cost of paying Employers National Insurance. That could mean more money in your pocket, for every hour you work.

Umbrella Company

Very similar to being paid directly by a client or agency. You become a PAYE employee of the Umbrella company . With very similar benefits and statutory rights that go with it. You also get to claim any genuine expenses you run up while going about your business, which of course, improves your take home pay. The more expenses you have the better.

Go Accounts do not offer an Umbrella payroll service, legislation has changed and we do not feel it offers any benefit to contractors.

Limited Company

If you intend to work as a contractor for 10 months or more, you’re often better off setting up your own Limited Company. You may hear people refer to it as a Personal Services Company, or PSC. First, you’ll need to form and register your own company. And as it will be a legal entity in its own right, set up a bank account under your company name.

If you’re new to contracting or freelancing, no doubt this will look a little daunting. But don’t worry. We’re here to take much of the hassle away. From helping you form your company, to handling all your accountancy and filing.

Directors all-inclusive package of £85 + VAT