How Project manager Contractors can increase their take home pay

For the truth about Limited versus Umbrella pay, click through to this exclusive page: Take home pay Limited company or Umbrella company.

Many large organisations have now grasped the benefits of working with external contractors as opposed to employing full time staff – and the hiring of Project Managers is no exception. A contract-based Project Manager provides employers with a truly flexible 'call on demand' resource which can be brought in for specific projects when required, be they short or long term.

You may have decided to go into contracting for a number of reasons; being your own boss, taking holiday when you want, control of your work however, one of the main reasons for contract work is the money.

If you're going to contract, you'll want to take home as much pay as possible. Here are some of our top tips on how to maximise your take home pay:

• Go limited- it's likely that you'll currently be working through an Umbrella company as this can be the simplest option. You may be surprised to hear that by working through a limited company, you can take home up to 20% more of your earnings! There are massive savings you could be making on National Insurance and VAT so make sure you find out whether you could go limited. Have a look at the real story on Umbrella vs limited company take home pay
• Expenses- through a limited company you can claim a large amount of expenses – this covers everything you need to carry out your contract work. These pages detail the different expenses that you're entitled to claim.
• Appoint an accountant – many contractors will tell you that by appointing an accountant you can save yourself a bundle in tax. Each person's situation is different so there'll be different tax savings to make; make sure you appoint a specialist accountant. Give us a call on 0500 152 500 to find out how much you could be saving.
• Bank accounts – don't leave your business account with a high balance, make sure you transfer stagnant money to a high interest savings account.
• Government schemes – in the current climate, the government is offering schemes to encourage new contractors. You could be taking advantage of anything from childcare vouchers to tax subsidies.

Any accountant or tax adviser will tell you that working through your own limited company is the most tax efficient way of working, meaning you keep more of your hard earned money.

If you want to find out how much you could be taking home through a limited company, take a look at this specialised contractor calculator.

If you're interested in going limited, these pages will tell you about:

Running your own limited company
Forming a limited company
Forming a limited company
Moving from Umbrella to Limited company

If you want more information about going limited, making the most of your earnings or appointing an accountant, please contact our recommended accountancy firm, SJD Accountancy. They offer great advice about contracting, paying less tax and making the most of your income. If you'd like to meet someone face to face who can give you this advice, they offer free meetings whenever, wherever as they have offices across the country.

To book a FREE meeting or just get some tax advice, contact jaime@sjdaccountancy.com or call 0500 152 500

Whether you're new to contracting or have been in the industry years, you'll find these pages extremely useful

Claiming expenses - Find out how which expenses you can claim to save you money!
Take home pay calculator - How much could you be taking home
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best
Take home pay case studies - Examples of contractors using a ltd co. & umbrella co.
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35

SJD Accountancy

SJD Accountancy is the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors and freelancers.

They have been acting for contractors across the UK since 1992, have more than 10,000 clients; are the only national specialist firm of accountants with offices in all major cities; are the most recommended accountancy firm on the internet and have more qualified staff than any other specialist firm with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA.

SJD Accountancy offers a complete package including: completion of accounts, payroll bureau, dividends, corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns for a fixed monthly fee of only £95 plus VAT.

They have also won every relevant award possible, including: the 'Accountancy Age Award for Excellence' twice, once in 2004 and again in 2007, contractor UK's 'Best Contractor Accountant', Sunday Times 'Best company to work for'; are a Quality Accountant as recommended by the Professional Contractors Group (PCG) and are recommended by the Sunday Times.