We believe it’s important to be aware of the common mistakes that many new contractors make, and how to avoid them. So, here are the top 3 common errors we’ve come across, and simple advice on how to stop yourself from falling into the same trap:
- Poor Record Keeping
When you run a business, you are responsible for making decisions based on comprehensive information. That’s why it’s essential to keep a record of all your expenses and income and the amount of time that it takes to complete a project. This will help you decide whether you are charging too little or too much for your time as well as understanding whether your business is financially stable.
- Lack of Tax Knowledge
The UK tax system can be complicated when you’re used to being employed and not having to work it out for yourself. When you make the transition to a contractor, you suddenly have self-assessment, IR35 and PAYE to contend with, which can be confusing. Don’t delay in speaking to an accountant to get the help you need from the start.
- Failing to Meet Deadlines
Effective time management will become your saviour. If you’re struggling to meet a target, you should look at ways to negotiate on the deadline or to outsource the work. Similarly, turn work down if you suspect you will not be able to deliver to the deadline.
Tailored Resourcing & Accountancy can help with bookkeeping and tax returns. Give us a call today on 0207 118 2900.
Tailored Resourcing & Accountancy offers a cost-effective and transparent payroll service to contractors, freelancers and small business owners. Offering the latest software and technology, we make sure you’re promptly paid through your own Limited Company or our Umbrella Company.