Taking Care Of Your Self-Employed Contractor Tax

Contractor Tax

As a  self employed contractor, you will need to take care of paying your own self-employed contractor tax, and not doing so in a timely fashion could lead you into hot water with the inland revenue. When doing a tax declaration it should include your gross income, that is money collected before deductions, and then your job related costs and other expenses. There are two categories of self-employed contractor tax; one for individuals and other for companies. Therefore if you operate as an individual you will need to fill out a different tax return form then if you were a registered company.

Keeping on top of all this can be difficult for self-employed contractors because they are usually busy enough doing jobs and making an effort to secure new clients. If you find yourself struggling with your bookkeeping, an umbrella company can help you, as you will sign a contract of employment with them and they will pay your taxes for you in a timely manner. This service is inviting for contractors as it frees up a lot of time and many are not so savvy when it comes to bookkeeping as they are more inclined to be good at manual work.