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Maximizing Your Savings

Maximizing Your Savings

Keeping your money in a safe place is an essential thing every freelancer should consider. Financial stability is fleeting for individuals who don’t know how to keep their money. That’s why you should be able to control the flow of your money, and not the flow controlling you. In short, don’t be carried away by the overflowing money hitting your account. You should think of the future and spend wisely. Unless you plan to still work after the age of 60, you should keep every cent of your earnings. So the ways to maximize your savings are:

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Advantages to Working through a PAYE Umbrella

People have always wanted to know what the advantages to working through a PAYE Umbrella are. Actually, it is very easy to sign up for those companies. The only problem is that it is very difficult to decide if those are what people really need. Since there are so many PAYE umbrella companies out there, it is important for people to spend time doing some research works. They should do those works so that they will end up signing for the best companies that suit their needs. Even if they think that they already which companies to sign up for, they must still wait for firm offers. In fact, there are recommended to let the authorities view their contracts so that they will know what mode of payments they should use.

 

The following are the advantages to working through a PAYE Umbrella. People could be contractors so that they will be considered as employees of umbrella companies. They are required to submit forms to the umbrellas. Those forms should instruct the umbrellas to invoice the agents based on their time sheets. After that, they could get paid as employees. The umbrellas will already deduct the necessary fees and income taxes on the earnings. Since those things are deducted, people do not have to pay anything else at all. There are no more further taxes that people will think about. The employees will only be required to fill in the necessary details in their time sheet and they could start getting salaries already. People do not have to worry about doing very meticulous paper works.

 

There are also other advantages to working through a PAYE Umbrella. The umbrella is ideal for those employees who have short term contracts. Sometimes, people are unsure when it comes to contracting. PAYE umbrella companies are recommended to those people. Any PAYE company is also ideal for those who only amount to less than twenty-five thousand pounds in a year. Salaries will be automatically sent to the bank accounts of the employees. When it comes to contracts, the people should really view the terms and policies which are included.

For people to know better if they could really get advantages to working through a PAYE Umbrella, they must know how to question the companies. First, they must know what types of services the companies provide. There are times when some companies offer more than the others. It is also wise for people to know how those employers will examine the contracts. There are different ways in examining contracts. Since the process involves a lot of money, people should also ask about the rates and fees. There are times when hidden charges are included and people only find those hidden charges when it is too late to back out already. Lastly, umbrellas pay in different ways. That is why it is recommended for people to check their umbrella regarding payments. Some pay their employees automatically. There are also some who only make payments after one month.

 

 

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31st January Deadline for the Self assessment Tax Return

Almost everyone needs to complete a tax return. The people who are paying their due taxes through their earnings through tax codes are exempted. There are times when some are required to complete the tax returns even if they are already paying through their tax codes. The following are those who are required to complete tax returns. If a person is self-employed, he is not exempted. Being self-employed means not being part of any company other than the one which is being owned. Company directors and trustees of certain companies are required to complete their tax returns as well. Employees who are receiving income from abroad are not exempted.

Tax returns must be submitted manually to the HMRC before the midnight of the thirty-first day of October. In some cases, it is not possible to submit on that deadline. Those papers which will be submitted after that deadline will not be accepted anymore. People should not worry since they could send those things online. They must consider the 31st January Deadline for the Self assessment tax return. People must consider that deadline since they will be forced to suffer the penalties. The penalties will cost them more than one hundred pounds. Those who are planning to pass their tax returns must send those things as early as possible to avoid paying huge amounts of cash. If people could not submit by the 31st January Deadline for the Self assessment tax return, they will also be forced to pay more than one thousand pounds. That will occur if the people have been late for more than ninety days already.

Recently there was a strike which were conducted by the office staff of HM Revenue and Customs. People could use that strike as an excuse for not making the 31st January Deadline for the Self assessment tax return. That excuse is very reasonable. In fact, according to the website of HMRC, they will not implement penalties to those who could not make the 31st January Deadline for the Self assessment tax return. People are allowed to pass their tax returns online before the second day of February. Those who pass on the first or second day of February will not be forced to pay the penalties. However, those who submit beyond that period will suffer. The goal of the HMRC makes sure that employees who are filing their tax returns will not be placed at a disadvantage.

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Keeping Basic Accounts as a Freelancer

Keeping Basic Accounts as a Freelancer

Doing freelancing has always been very rewarding. You work all the way from your place. You work at your own time. You earn as much as you want. You don’t have a grumpy boss to whoop your ass around. And you don’t have jealous officemates ready to stab the moment you turn your back. No matter how you put it, however, you end up the guy who doesn’t have a stable job. That is why it’s important for you to keep track of your basic accounts. The following are important considerations you need to take into account:

Get a Solid Billing System—as online invoicing tools grow in numbers, you can try them and see what billing system you are convenient working with. You can register for a trial version, which allows you to test run their system. Make sure to compare each other’s features. See where you can make most of your money.

Keep a List of People Who Owes You Money—knowing the ones who are paid up and the ones who are past due allow you to catch a glimpse of your earnings for a specific month. Doing so will give you a real-time data of your income against your payable bills. It allows you to draw out or update your plans for the next working session should you see lapses in the previous one.

Save Every Eeceipt of Every Payment—might sound unhealthy hoarding of unnecessary things, eh? It’s not pointless at all. Do this and you surely save thousands of dollars yearly. Keeping all receipts from food, gas, electricity, internet connection and phone lines allows you to see whether you have large unnecessary expenditures or a cost-efficient way of life.

Create a Bank Account Intended Only for Online Purchases—you surely don’t want to mix up your personal accounts with your business account. You’ll be protecting the safety of your business, house and your money if you maintain it that way. Breach of this simple rule would endanger you to be exposed to legal hot waters that might result to the loss of your business and properties. So, again, keep different accounts.

Track Your Everyday Spending—earning is inversely proportional to your spending. The higher your expenses, the lower your income gets. You may want to make sure that your money is well spent than being thrown away for pointless things. List all things you purchase and all bills you paid. Categorize each purchase or payment into two: “necessary” and “unnecessary.” Of course, you owe yourself with the latter but make sure to keep it low.

Being a freelancer gives you the freedom—to earn and to spend. Your earning is boundless, not limited by a four-cornered office walls. You get to buy what you want, and spend like you just got your face on Forbes Magazine. But end of the day, you are still a freelancer. No work, no pay. And it is necessary that you think smart. Keep your basic accounts in check, because you don’t have a lifetime to work. Think ahead of everyone. Good Luck!

 

 

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