What benefits are available to freelancers and contractors?

If you have spent any period of your life to date as a freelancer or contractor, then you will already be aware of the lack of a ‘safety cushion’ of such work. There’s no holiday pay, after all, and short-term contracts create anxiety to win the next one in good time. With all of the will in the world, however, even with one of Sherwin Currid’s (http://www.sherwincurrid.com) tax accountants in Surrey by your side to ensure that your financial affairs are in order, you may still require a bit of extra help from time to time.

That’s why it’s a good idea to investigate the benefits that may be available to you, whether you are struggling to make ends meet around work or you could do with greater financial security in-between contracts. Certainly, those in the former situation may be thankful for the help given to them by childcare vouchers in paying for quality childcare. Many freelancers and contractors among the clients of our accountants in Surrey discover that they are eligible for such vouchers, which allow basic-rate taxpayers to save as much as £962 per year, with this figure potentially reaching £1,195 for higher-rate taxpayers.

There are two means by which those using an accountant in Surrey could qualify for childcare vouchers. Firstly, they could be employed by their own UK limited company, with those paying themselves a salary having the option to pay themselves £55 per week or £243 per month of their salary in the form of childcare vouchers. As the portion of your income that these vouchers represent is exempt of tax and NI, you can not only save a significant amount of money yourself, but hundreds of pounds can also be saved by your limited company on the annual NI contributions that are paid on your salary.

Those on a short-term or long-term contract could also be eligible for childcare vouchers, but they’ll first need to ensure that the scheme is actually offered by the company that they are being contracted by. If it is, then they will need to switch from invoicing to being on the firm’s payroll, and once this is done, agree to salary deductions up to a monthly maximum of £243, before the amount is paid to them in the form of tax and NI free childcare vouchers.

For a freelancer or contractor who has been out of contract for an especially long period of time to the extent of suffering serious financial hardship, another option is Jobseeker’s Allowance (JSA). This basic allowance helps with the cost of living, and to claim it, you must be unemployed or working less than 16 hours a week, as well as actively seeking work. Although certain means-tested eligibility criteria may have to be fulfilled depending on the kind of NI contributions that you pay, many of those using a tax accountant in Surrey from Sherwin Currid (http://www.sherwincurrid.com) have found it to be an invaluable supplementary income.

Editor’s Note: Sherwin Currid (http://www.sherwincurrid.com) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.