Limited company contractors Articles

Limited Company Contractors Can Benefit From Open Banking

Open Banking is set to modernise bookkeeping for limited company contractors, with banking data integrated directly into online accounting software.

Umbrella.co.uk's limited company contractors all use FreeAgent’s cloud accountancy software to simplify their accounting. And with FreeAgent on the forefront of the Open Banking changes, bookkeeping is about to get even easier.

Open Banking is set to roll out to all FreeAgent customers soon, so we thought we would take an in-depth look at the changes and how they can benefit limited company contractors.

Another Dividend Tax Grab This Autumn?

Chancellor Philip Hammond has been urged not to ‘clobber’ limited company contractors and other businesses with another dividend tax grab this autumn.

The Federation of Small Businesses (FSB) said it was concerned that the Treasury might once again cut the tax-free dividend allowance for limited company directors, to collect an extra £1.3bn in tax receipts. 

The Chancellor has already reduced the allowance from £5,000 to £2,000, a policy which took effect this April.

Now there is concern that Philip Hammond will announce a fresh raid on the dividend tax-free allowance in this year’s Autumn Statement.

One-in-Five Sole Traders Needlessly Preparing for IR35 Reforms

New research indicates that one-in-five UK sole traders are preparing for the upcoming changes to off-payroll working rules in the private sector, despite the fact that the legislation will not affect them.

Completed by the Freelancer & Contractor Services Association (FCSA) professional body and cloud accounting software provider FreeAgent, the research found that 18% of sole traders were making preparations for the new rules when they would not affect their business type.