New Recruitment Rules: How Will They Effect Umbrella Companies?

Through the recruitment process in the UK, an umbrella company acts as an employer to freelancers, sole traders and contractors who work under fixed contract assignments. These assignments are usually provided though recruitment agencies, and the agencies reduce their tax liability by issuing contracts to limited companies.

The umbrella company then issues invoices to the recruitment agencies, and once the invoice payment has been paid, the contractor is paid by the umbrella company through PAYE, with added benefits like certain elements of tax offsetting, including travel, accommodation and meal expenses.

Since the government introduced the IR35 tax legislation, umbrella companies have become more prevalent in the UK. Taking inspiration from the French version of IR35 (portage salarial), the British IR35 was brought in to determine contractors’ employment status and their ability to make use of small company tax reliefs.

How Umbrella Companies Work

Contractors first provide their umbrella company with their working timesheets, and in turn the umbrella company issues an invoice to the limited company (or client) for payment of those working hours. The client will always be the company or business for whom the sole trader or contractor works for, and this can be across all industries and levels of employment.

Umbrella companies are required to use the same tax (PAYE) calculations as other sole traders and contractors, however the only difference is will be the level of service they offer for their fee to their customers. There are a variety of ‘allowable’ expenses that umbrella companies claim for, and from hotel and accommodation expenses to mileage and general travel expenses, their popularity among contractors continues to rise. Food allowances can rarely be claimed, as the HMRC believes that a contractor would continue to eat, whether they’re working or not.

Auto Enrolment Explained

Although small companies don’t have to auto-enrol their contractors into pension schemes until 2014, larger companies have already begun the process. Contractors can choose to opt out of the auto-enrolment pension plan, for example if they already have a pension plan set up, but this can only be done once they have been auto-enrolled.

The service was set up to provide contractors with the same benefits as regular employees, seeing that the IR35 tax legislation makes contractors pay the same, and sometimes more, tax than regular employees anyway. If a contractor chooses to take advantage of their umbrella company’s pension scheme, they can benefit from their employer’s pension contribution, just in the same way as regular employees of that company.

Implications Of Auto Enrolment

Although contractors can take advantage of a funded pension from their umbrella company, as well as saving on tax and NI contributions, the amount of contribution and the fee it will cost the contractor will differ from company to company. To meet the increased costs, umbrella companies may decide to increase their rates. Furthermore, contractors that deal with multiple umbrella companies may end up having multiple pensions. Thus, a contractor would have to opt out of multiple pensions through umbrella companies in order to save for their retirement.

Brookson are a specialist accountancy that work with freelancers and self-employed professionals. Visit them to find out more.

Spread Betting Tips

Reading a newspaper has never been a better idea, as therein can be found spread betting tips. It is possible to make money from spread betting in all manner of ways in response to news.

The global recession has been good for spread betting, where it is possible to make a profit from falling prices using such companies as Cantor. When the recession began in 2008, The First Post and The Week both reported that British people were increasingly opting for spread betting rather than conventional share trading. Spread betting accounts grew from 1,000 in May 2007 to almost 3,000 in September 2008 at a time when disposable incomes were shrinking.

Gold is regarded as a safe haven, and hit remarkable highs at the onset of the recession. In addition to gold, the most popular markets were crude oil, vulnerable currencies and the Dow Jones and FTSE indices. Spread bettors placed wagers on which currency or bank would be next to fail. The largest bets were placed on Washington Mutual prior to its collapse on September 25, 2008, after which banking institutions suspended all short bets.

Some industries are relatively immune to recession. Pharmaceuticals continue to generate money whatever the economic climate, while debt assistance companies, liquidators and administrators positively thrive. You could always watch who is doing well in your high street, for instance jewellers buying gold from people seeking quick money.

In the United States, surprisingly poor non-farm payroll figures can set off a knee jerk bearish reaction evident in the Wall Street Index. Conversely, if the figures exceed market expectations, prices can rise. Weaker data, however, could foster optimism that the Fed will inject more stimulus funds, which might limit negative sentiment.

With spread betting, it is possible to profit from prices that fall as well as rise. The Eurozone debt crisis is a godsend for financial spread betters. The French CAC and German DAX both rose after the election of the New Democratic Party in Greece. In contrast to others, the party wished to remain in the Eurozone. Investors going short would have profited when Spanish 10-year bond yields rose higher than 7.51 percent, which was itself prompted by fears that Spain would require a bailout. Prices also fell when Murcia revealed that, like Valencia, it had asked for government support in the face of unsustainable debt.

Exchange rates are also heavily influenced by global economic and social events. When China announced that it would loosen its currency peg to the US dollar, world markets rose, as a cheaper renminbi would reduce Chinese exports and increase imports. Southeast Asian currencies rose markedly, and the yen and Australian dollar also benefited.

Current events provide a great opportunity to make money.

Invest and Plan to Stay Secure Financially

Choosing the right investment strategy proves difficult for even seasoned market experts, and an investor’s personal financial goals play an important role in managing wealth. For example, women live longer than men, but they often fail to make adequate arrangements for retirement. Women take time off from work and fail to become fully vested in retirement plans. Many women depend on their husbands making retirement arrangements, but find themselves facing death or divorce, leaving them without any clear retirement plans.

Safe investments such as bank accounts pay little interest, and these returns might fail to keep up with inflation. Generally, the higher the risk, the greater the returns on investments become. Larger risks could generate big rewards, but all investments have the potential to fail spectacularly.

Investment strategies usually try to manage risk by spreading it among different investments to avoid catastrophic losses. The top 10 hedge funds returned an average of 17 percent in 2011, which made good returns for most investors. Investing in IT technology has the potential to earn astonishing dividends, but the highest returns seldom remain sustainable for long-term portfolio growth.

Getting professional advice for asset management, tax planning, risk management, and estate planning makes sound financial sense for investors who face a bewildering array of investment options, tax incentives, and stock choices. Articulating goals and planning the right strategy to meet them needs some degree of expertise in the complex financial markets available to modern investors.

Experts like Walter Wisniewski Paragon Capital put their clients’ needs first, charging straight fees instead of commissions. Investors can rest assured that these kinds of financial experts have no ulterior vested interests in particular investment strategies, so they can trust the advice they get for wealth management and meeting short- and long-term goals.

Understanding clients’ values and goals goes beyond investment recommendations, empowering people by crafting strategic plans to finance college educations, prepare for retirements, expand businesses, or manage estates to get the best tax advantages. Financial investments could compare to orchestral symphonies, and each investment creates an important contribution to the result like a particular note, tone or musical instrument. Although complex, both symphonies and financial strategies seek to manage many separate functions to produce certain pleasing outcomes.

Investors could talk to 50 financial analysts and get 50 different investment strategies, and many of these would prove beneficial. The best answer for any particular investor depends on his or her goals, so professional advisers must listen and get to know their clients before making recommendations. Steady returns on savings might make sense for some investors, but others seek better returns to outperform inflation. Regardless of strategy, diversification helps spread the risk and even out returns on investments.

Unexpected life changes can throw plans into confusion, but adequate planning, even automobile insurance , makes allowances for all eventualities. Insurance, risk management, retirement planning, setting up trusts, and other methods help people manage wealth and protect their lifestyles from sudden deaths, divorces, lawsuits, real estate crashes, and economic recessions. Finding trusted advisers ranks as one of the most important steps investors can take to guarantee their independent financial futures.

Investing in Egypt’s future

With Europe and the USA facing huge economic challenges and barely registering any meaningful growth, investors around the world are looking more and more at alternative markets in which to place their capital. There are many good reasons for choosing Egypt, which has weathered the economic downturn better than many Western countries.
Although Egypt’s GDP fell at the beginning of the downturn, a scenario repeated in many other countries, total output quickly recovered within a year and now the economy is expected to grow by an impressive 6.5% by 2015.

Investors, wary in recent years because of political turmoil in the country, are beginning to look afresh at Egypt where growing sectors include the construction industry, communication and information technology, tourism, manufacturing and transport.

According to news agency Reuters, the Egyptian government is putting its full weight behind a string of infrastructure projects totalling some $8 billion.

The projects, a mix of government and public-private partnerships include the building of a new tunnel under the Suez Canal, and a major Mediterranean port to spread Egypt’s population more evenly away from the crowded Nile Valley and Delta region, where the vast majority of the nation’s 83 million people live.

Deputy Finance Minister Hany Kadry Dimian said that half of the 14 projects were ready for investment while the other seven would be launched in the next 18 to 24 months.
He said the projects covered solid waste management, drinking water, health, telecommunications and roads.

This latest news follows an announcement by Qatar that it will make critical investments in a $3.7 billion oil refinery project in Egypt. The exact amount of the investment is not known although some observers think it will probably be in the region of $400 million.

Governments and major institutions are usually at the centre of such large-scale investment projects. But for the rest of us wanting a little piece of the action, and who are simply looking to grow hard-earned savings with minimal risk, the banks in Egypt are probably where we should be heading. And you won’t need to know much about the intricacies of modern-day finance either because when it comes to managing personal wealth, banking services these days tend to have it all covered.

Banks  offer customers access to in-depth financial planning and wealth management which is backed by sound, objective, and professional advice. Whether you are a cautious investor or a more adventurous one, they’ll help you decide what’s best for you with a wide range of investments to choose from.

In fact the biggest problem you’ll likely face is not how to grow your money but which bank to go for. There are so many good banks in Egypt, many of them major multinationals with names that are instantly recognizable.

Major reforms from the 1990s onwards mean today’s consumers enjoy a liberalized and modernized system which is supervised and regulated according to internationally accepted standards. The banking sector has certainly come a long way in a very short time which is why it is now highly regarded across the world.

Increase Your Productivity in Just 10 Minutes

What Can be Done in 10 Minutes – An infographic by QuickQuid

If you are looking for various ways to increase productivity, try these ideas:

1) Fix Minimum Time Spent on a Task
There is no point in trying to complete a whole military resume in ten minutes — that’s barely enough time to decide on the formatting! When you try to get something done in less time than is necessary, you’ll just leave frustrated and lacking even more motivation than before.

In order to know how best to use your downtime, you need to know what tasks you can accomplish and how much time they take.

Here are a few of your typical chores and how long they normally take:

5 – 10 minutes:

  • Load or unload the dishwasher
  • Start a load of laundry
  • Send an email
  • Clear a surface

10 – 20 minutes:

  • Fill garbage bags
  • Fold clean laundry
  • Research job opportunities
  • Plan an involved task

30 – 60 minutes

  • Revise your resume
  • Fill in a job application
  • Go for a jog

2) Keep an Eye on the Clock
All too often, we are simply unaware of the fact we are wasting time until it’s too late. Try to identify the ways in which you waste time, and take steps to remind yourself that you could be doing something else.

There are a number of different ways to do this, such as:

  • Set a timer when you begin an engrossing activity so you are aware of time passing.
  • Get into the habit of doing something productive before you begin your activity — your five-minute list will be helpful here!
  • Never put off until tomorrow what you can do today. If you catch yourself thinking “I really should do that,” then get up and get started right away!

The hardest part for many people is simply getting started, so it is important to get into the habit of dealing with issues as soon as you think of them. Once you have finished, you will likely realize that it was much easier than you thought!

3) Track Your Accomplishments
It’s easy to fall into the trap of thinking that you are not getting things done, which can leave you unmotivated to continue. Remind yourself of what you have achieved so far to give yourself a boost.

Whether you decide to use a calendar with stickers for every day you work on a project, to keep a list that you tick off, or to use some other way of recording your progress, it is important to recognize what you have already achieved. is the premier online provider of short-term loans in the United Kingdom. Its quick, convenient services have helped over half a million Britons bridge the gap between paydays from the comfort and privacy of home.

Getting Out Of Medical Debt

Eleven months went by before I realized that I had a serious gallbladder condition. I wasn’t 100 percent sure, but the symptoms aligned with what I was experiencing. In November of 2011 I made myself go to the hospital to get an official diagnosis. As a person without health insurance, I knew this would be an expensive adventure.

The High Cost Of No Insurance

At the hospital I was given morphine, six prescriptions and a physical exam. They also did tons of blood work and an ultrasound. These things combined cost me $3,000 total. That is a huge number for someone without a lot of cash to begin with. I only got my diagnosis of gallbladder disease. Surgery was not an option since my condition wasn’t severe enough. I was in pain for about eight hours total, and the visit took four hours of waiting. The hospital couldn’t deny me treatment, but they could hound me for every penny owed.

Getting Started

The worst part was taking the first steps to get out of debt. I felt nauseated facing the huge bill before me. I was told to get started with a savings account just for setting aside money for emergencies like this. I also called the hospital and asked if anything could be reduced in price or eliminated from my hospital bill. This helped a lot in lowering what I owed. Without calling in, I would have still owed the $3,000. I was able to knock my debt down to $2,200.

Keeping Up With Payments

I made payments whenever possible. I made sure to make at least one payment per month to keep my account from going to collections. When I had extra money, I made larger payments. This gradually reduced the amount I owed. It was relieving to work on paying it off, but it wasn’t easy. I had to cut back on buying things that I didn’t need.

Reaching The End

Getting close to the end of my debt was relieving. I called and asked about another reduction if I agreed to pay in one large chunk. They lowered by outstanding debt by $150. This wasn’t much, but it did make a difference in my financial situation. I was grateful for that reduction.

Ignoring debt doesn’t make it go away. Sometimes you have to dive in and tackle it from whatever angle you can. Putting it off will only make things worse.

Three reasons to outsource your payroll to online services

Whilst an in-house accountancy might seem reliable, it is often much more beneficial to outsource your payroll needs to an online service.

More than just being online, which has the benefit of being highly accessible any time of day or night, there are a few other advantages that you might not have considered. Whether it’s the reduced cost, automated process or the expert knowledge behind the service, there is plenty to benefit from outsourcing your payroll to a reputable online service.


To put it simply, most businesses can’t afford the cost of keeping accountants in-business to monitor the payroll duties. It can be expensive, offering minimal benefits. Since it’s a regular and inevitable cost, there would be little you could do in the way of saving costs with this option.

Even when you can afford it, it takes away a lot of staff hours. Doing some basic maths, by figuring out or determining how many hours each week and month are spent on managing payroll accounts, will show just how much time is being wasted on the payroll.

The alternative then, is to outsource somewhere cheaper. Since these companies regulate the payroll of various businesses, rather than solely relying on your custom, the cost is much more reduced.


Being online, the payroll process can be automated to a certain extent. Since it’s a regular procedure, it makes sense to have it done at specific points without constant input. It should still be monitored, of course, but by being automated you can save a lot of time and energy.

Furthermore, by being an outsourced automated process, any errors are not your responsibility. Should anything go wrong, the online service will quickly and effectively remedy the situation. Not only does this ensure that everything is in order but it will keep your employees happy as they get paid on time.

Knowledge and insight

Finally, online services work in a similar fashion to an accountancy firm, in that the staff and company providing the service understand the complicated system of the payroll and related taxes. This means that you’re entrusting your payroll, and the related money, to the hands of knowledgeable professionals such as Sage One.

More than just an expert opinion, having these accountants monitoring your payroll means you have access to professional advice. Both you and your employees will most likely have a limited understanding of the payroll system and the online service can easily explain any situations to you and your employees; keeping everyone happy in any situation and allowing for greater peace of mind. This, in turn, should hopefully keep the workforce happy, increasing productivity.

In conclusion, these are only a few of the advantages available when you outsource to an online service. Reliable and effective, online services are becoming a very popular option. If you’re looking to improve your payroll, than this might be an option for you too.

Is Public Liability Insurance mandatory?

Business owners work hard to develop and maintain their businesses. With so much going into owning a business, it is important to also protect it. Business owners should have certain types of insurance coverage in order to do this.
One type of business insurance that a business should have to protect it is public liability insurance. While public liability insurance is not mandatory, it is strongly recommended for businesses. The reason for this is that it can protect your business from any claims being made by third parties.
In customer-facing businesses, customers as well as members of the public will come onto the business premises. This also includes those who operate businesses from their homes. Public liability insurance provides many different aspects of coverage.
If a third party were to make a claim against your business insurance, the policy would cover any damages awarded to the third party. The damages are awarded in the cases of injury or damage to their property. However, this is not all that is covered. When dealing with these kinds of claims, it is often necessary to obtain the services of a solicitor. This can be quite expensive. Public liability insurance will reimburse a business for these expenses.
Sometimes when dealing with third party claims, the injured party will seek treatment from the hospital. They may also need an ambulance. In some of these situations the NHS may seek reimbursement. If this is the case, a business with public liability insurance would be covered for this expense.
When obtaining public liability insurance, the premiums will vary according to the business and the industry. Many times it depends on how many people may be on the premises at one time, as in the case of a hotel. Also, the premium amounts depend upon the level of coverage selected.

Start Investing Money June Carnival Roundup

We are happy to have our articles included in the following articles. A big Thank You to all who hosted these amazing carnivals in June.

Carnival of Financial Planning at Intelligent Speculator
Yakezie Carnival at 20s Finances
Carnival of MoneyPros at Financial Conflict Coach
Carnival of Retirement at Finance Product Reviews
Totally Money Carnival at Sterling Effort
Financial Carnival for Young Adults at Young Family Finance
Carnival of Retirement at Simple Finance Blog
Yakezie Carnival at Free Ticket to Japan
Wealth Artisan’s FinCarn at Wealth Artison
Totally Money Carnival at Financial Success for Young Adults
Fin. Carn. for Young Adults at 20s Finances
Carnival of MoneyPros at Finance Product Reviews
Carnival of Financial Planning at Cult of Money
Carnival of Retirement at Making Sense Of Cents
Canadian PF Happy Hour at Canadian Personal Finance
Carnival of Fin. Camaraderie at The University of Money
Carnival of MoneyPros at Broke Professionals
Yakezie Carnival at See Debt Run
Fin. Carn. for Young Adults at 20s Finances
Yakezie Carnival at One Cent At A Time
Carnival of MoneyPros at Simple Finance Blog
Carnival of Retirement at I Am 1 Percent
Festival of Frugality at Help Me To Save
Carnival of Financial Planning at The Skilled Investor

Start Investing Money May Carnival Roundup

We are happy to have our articles included in the following articles. A big Thank You to all who hosted these amazing carnivals in May.

Carnival of Retirement at Young, Cheap Living
Yakezie Carnival at The Frugal Toad
Carnival of MoneyPros at Money Cone
Fin. Carn. for Young Adults at 20’s Finances
Carnival of Financial Planning at Card Wisdom
Totally Money Blog Carnival at Debt Blackhole
Festival of Frugality at See Debt Run
Carnival of Financial Planning at Financial Excellence
Totally Money Blog Carnival at Balance Junkie
Carnival of Retirement at Simple Finance Blog
Yakezie Carnival at One Cent At A Time
Carnival of MoneyPros at Financial Success for Young Adults
Carnival of Financial Planning at Nerd Wallet
Totally Money Blog Carnival at Don’t Quit Your Day Job…
Festival of Frugality Funny About Money
Yakezie Carnival at Financial Success for Young Adults
Fin. Carn. for Young Adults at 20s Finances
Carnival of Retirement at Money and Risk
Carnival of MoneyPros at Miss Wallstreet
Yakezie Carnival at Daily Money Shot
Fin. Carn. for Young Adults at 20s Finances
Carnival of Financial Planning at Planting Money Seeds