Tag Archive | "contractor"

“Blame The BBC,” Say The Stars

Being a television star is mostly about glitz and glamour, but when you are hauled in the interview room at HMRC HQ, then not so much.

Regular readers will be aware of the BBC television star Christa Ackroyd, who recently had her life of glitz and glamour interrupted by a £419,151 tax bill that landed on her front door mat one morning.

I’m sure she didn’t enjoy writing out that cheque, but when the HMRC come knocking then you don’t fool around. Pay the damn thing.

As I accurately predicted, this is just the tip of the iceberg when it comes to the house of cards that is British Broadcasting Corporation, or BBC for short.

In my prediction, I stated that many other BBC stars will probably be under investigation soon for avoiding things like IR35 and tax.

Only a court of law and a judge slamming down the hammer can decide guilt of course, and there are many potential scenarios that could happen if the HMRC do decide to look closer at the inner tax workings of the rich and famous.

Seeing this potential mishap in the future, many of the BBC stars are already preparing their acceptance speeches…although this isn’t the Oscars and it isn’t the Raspberries..and instead of writing out a list of people they want to thank, they are writing out a list of people they want to blame.

“Blame the BBC,” seems to be the general mood among some current television stars who could be looked more closely at by HMRC in the future. “They made me do it,” could very well be their response when questioned about IR35 and tax, or lack of it.

This is further referenced in the court case of Christa Ackroyd against HMRC, also known as “Christa Ackroyd Media Ltd v Revenue and Customs,” where many newspaper writers did comment that the BBC does not have a typical relationship with its freelancers and contractors which normal companies have.

In other words, the whole subject of tax and IR35 may very well be a special case when it comes to the BBC, and the way they are treated might need to be different than normal. Who knows for sure.

For example, Miss Ackroyd, who stars in the popular BBC programme “Look North” which is watched by millions, well, she said in the court battle that permission has to be sought from the BBC head honchos if she wanted to take on other work.

Normally, in the freelance and contractor world you are free to prospect who you want, when you want, and how you want. If you desire 2, 3, or even 4 jobs at once…do it, although it seems things could be different at the BBC. I don’t know exactly.

What I do know is that for the average freelancer and contractor, what you need to do is hire the right accountants to do your books for you.

If you get investigated by HMRC then you don’t have the so called “blame game,” to fall back on. That is why having a professional in your corner is so important.

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She Owes Half a Million, Thanks to IR35

While BBC presenters might be earning a nice bit of change (all thanks to the licence payers), that hasn’t stopped the IR35 crackdown.

Regular readers of this blog will be only too aware about how the government have changed the IR35 rules for contractors and freelancers in recent years, with those working in the public sector most affected.

Well, those millionaire presenters at the BBC thought this whole IR35 thing didn’t apply to them, but a court of law has now spoken, and the judge at the head of that court has slammed down the hammer…to the tune of nearly half a million quid.

That is what happened to Christa Ackroyd who presents the BBC programme “Look North.” I’m sure she is good at her job, although I must say that I’ve never watched the show myself.

Neither has the judge, I would say, because as that hammer was being slammed down they ordered a payment of exactly £419,151 to be paid by Christa for not abiding by the proper IR35 legislation.

I’m sure she won’t enjoy writing out that cheque but what can she do? Not a lot, because when the government demand you have to make a payment then you better get your cheque book out.

So has Christa taken one for all BBC presenters or is this just the start of a saga that is going to be in the headlines over the coming months? Unfortunately for those BBC millionaire stars it is the latter, because if reports are to be trusted then we can expect to be hearing about more BBC employees being hit up for IR35 money.

Around 100 of the BBC team are being looked at right now, and if wrongdoing is found then it wouldn’t surprise me if the whole organisation comes under scrutiny.

It’s no secret that many BBC presenters have been accused of forming Limited Companies and funnelling their money into certain places in a bid to pay less tax and avoid IR35. Who knows if this is true or not? I really don’t know, but what I do know is that investigations should be made so we can get a clearer view of the situation.

Of course, the IR35 situation has already affected millions of people in the public sector, with many deciding to down tools at the first available opportunity and move towards the private sector.

They might not be safe for long though, as the Autumn Budget last year gave us a glimpse into what Philip Hammond and the government have in store.

What they are proposing is everyone be subjected to the IR35 thing, even those who are working in the private sector.

“Watch your back contractors and freelancers,” is my advice, although hopefully you won’t get hit up for half a million quid if the government do come knocking.

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TPAS Take Action, Contractors Confused

A press release hit the major news hubs this week, in a big announcement that all contractors should take notice of. It was from TPAS.

The first reaction from our nations contractors was “who are TPAS?” Confusion won the day, on the day of the press release.

Fast forward 24 hours and it has just been clarified that TPAS actually stands for The Pensions Advisory Service, and their press release and big announcement was in relation to self employed pensions.

Something which I have talked about quite a bit right here on this blog, as regular readers will be only too aware. Well, it looks like TPAS are now following in the footsteps of us, or standing on the shoulders of giants as some people might say.

What TPAS have been trying to say in the press release, which was sent off to all the major news hubs remember, well, what they have been trying to say is that not many self employed people are saving into a pension (this includes contractors as well).

Tell us something we don’t already know. It was only a few weeks ago that I reported on the exact same subject. “You are not saving into a pension” is more or less what I said, and with that single sentence thousands of contractors immediately took notice.

Now TPAS are attempting to nudge into the centre of attention and steal some of limelight. You heard it here first though.

What the press release from TPAS goes on to say is that less than a third of our nations self employed save into any kind pension.

Many of these people plan to use their business as a way to fund their retirement according to TPAS, but this doesn’t always work out the way it should.

This has made TPAS spring into action and produce a booklet for all of you self employed people out there.

“Pension saving for the self employed” is what they imaginatively called the booklet and I’m just hoping it doesn’t come in at over 50 pages.

I’ve read some of these kind of booklets before, many came in at a whopping 100 pages, and all of them went directly into my bin.

I just hope that TPAS and their “pension saving for the self employed” is a short and concise read, that I can skim through in about 5 minutes. Any longer than that, and sorry TPAS, but your booklet is going straight into the bin.

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“Down The Drain!” – Public Sector and IR35 Reforms

It’s no secret that many public sector contractors were planning to down tools and head towards the private sector. The reason? IR35 of course.

Since these IR35 reforms came into effect earlier this year many experts have observed the so called “talent drain” from public to private…with one pundit quipping that the public sector is going “down the drain!”

This comes after a survey of nearly 1500 recruiters who hire contractors on a daily basis, and their opinion? What they have noticed is that public sector contractor placements have fallen off the map over the last few months, with 70% of recruiters noticing the shift towards the private sector.

I could have told you that…as regular readers of this blog will be all too aware. It’s just common sense though isn’t it really when you think about it, because if contractors are better off elsewhere and making more money they are going to take advantage of the opportunity, not sit around watching the clock while working for the government.

Samantha Hurley, the director of operations at the company behind this survey agrees with me, she said, “As we feared, it seems that these changes have had an adverse effect on the supply of contractors to the public sector.”

Some experts and pundits have even put a number on the amount of contractors who will eventually make the move from public to private, with 85% being touted as the total.

This is almost like the old days of the American frontier if you ask me, where thousands of Americans made the move from East to West, all in search of gold and new opportunities.

Only this is 2017 and it is the UK contracting scene, but that doesn’t change the fact there is a new gold rush to get excited about, but only if you make the move to the private sector. Those who stay put in the public sector, you miss out.

Julia Kermode, chief executive over at the Freelancer and Contractor Services Association, or FACSA as some people like to call them…she also agrees with me as this was a recent statement made by her…”We have seen decisions being taken by the public sector banning all workers who operate through their own limited company This has seen many contractors deciding to leave the public sector.”

Maybe the private sector gold rush won’t last for long though? Reports are suggesting that IR35 is going to be introduced there as well at some point, which of course, would totally annoy the vast majority of contractors.

Not only that, but the survey shows us that 78% of recruiters think that IR35 in the private sector would damage the UK economy as a whole, especially with Brexit just around the corner.

My message to contractors is make the most of the private sector while the times are good. Who knows, you might even be able to take an early retirement before IR35 comes in. Keep making that money.

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I’m a Freelance Contractor and I’m Tired of Hearing This…

It a great time be a freelance contractor in the UK, no doubt about that, but sometimes it can be frustrating to hear people say the same things, over and over.

The simple fact of the matter is that explaining yourself is part and parcel of the self employed lifestyle, especially if you work from home on a freelancing or contracting basis.

Family, friends, neighbours and complete strangers, are curious, confused, and even downright baffled when you are still chilling in your pyjamas at 2 in the afternoon.

This often leads to a barrage of comments and questions, which at first you don’t mind responding to…but after a while you just want to ignore.

When are you planning to get a real job? This is one of the questions that gets asked the most to freelance contractors, and many are tired of hearing it.

Fortunately, being self employed is a real job, and even if other people will never accept your answers, at least you can take satisfaction from the knowledge you probably make more than they do, while working less hours. Take that!

“I wish I could work part time,” is another statement you might hear from members of the general public as they witness you sitting in the garden in your dressing gown at 4pm.

What they don’t realise, of course, is that the amount of hours you put in to a job has nothing to do with the amount you are paid.

Traditional employees may very well clock in and out every day and do their 8 hours, but only 1 or 2 hours of that is typically productive. In contrast, a self employed freelancer can put in 4 hours of focused work and get way more done.

Do you offer a cheap rate, mate…rates for mates? No doubt many self employed people have heard those words, to the point where even the slightest inclination that a mate is about to ask for a cheap rate, or even a freebie, well, it sends you running.

It would be nice if you could work for cheap whenever friends and family needed something doing, but you can’t get away from the fact you need to make a living, and in the freelance and contractor world that means charging as much as possible…not working for free.

“Work at home jobs are scams.” You’ve no doubt heard that one, and are tired of hearing it if you hang around with a lot of people in traditional employment.

It seems they just can’t comprehend how someone can avoid commuting to and from work everyday in traffic, then avoid the office politics and taking orders from a boss, and then avoid even having to leave the house…to the point where getting up at lunch time is a regular thing.

“You will have to get a real job soon,” they say for the 100th time. Yes, you are tired of hearing it, but you know the truth which means you get the last laugh.

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NO Tax Cut for Contractors Says Chancellor

If you are a contractor in the UK then you probably want to pay less tax. Unfortunately, it doesn’t look like there will be a tax cut any time soon.

That is according to the chancellor Philip Hammond, who recently banged his fist down on the table and demanded…NO tax cut for contractors!

This news will no doubt come as a shock to the millions of contractors, freelancers, gig workers, and self employed employed people around the country, because if you remember, it was only a few months ago that Mr Hammond said we would do “whatever we have to do” when Brexit takes place in order to stay competitive.

Many experts thought he meant a tax drop would be on the cards, in a bid to attract highly skilled contractors to relocate on a permanent basis to the UK, but it appears this is not what he meant.

Instead, there will be no tax cuts and no attempts to get one over on our European neighbours. It actually seems that everybody is getting on really well right now, as the Brexit negotiation take place and the European leaders try to work this whole thing out.

So everybody is friends at the moment and it’s all smiles…but how long will that last? Not long in my opinion, and if our soon to be ex European partners try to pull a fast one in the negotiation room, then it wouldn’t surprise me if Philip Hammond starts to talk about tax cuts once again.

Is it really fair that the chancellor is using UK contractors as pawns though? A few months ago he got everyone’s hopes up with all this talk about less tax, and then, without a moments hesitation he changes his mind and acts like nothing ever happened.

Meanwhile, the millions of hard working self employed people are let down once again. Is it any wonder that the Conservatives lost votes at the recent General Election? I don’t think so.

It had a lot to do with the senseless tax grab the chancellor tried to get away with if you ask me, and that is why many people stayed away or voted elsewhere at the election.

Well, if people were not impressed with the tax grab, something tells me those people (and even more) are not going to be impressed about the chancellor promising a tax cut and then backtracking only a few months later.

A tax cut might have been a bit of pie in the sky anyway, with one political correspondent saying that due to the Conservatives losing seats in Parliament then getting a bill passed for less tax would probably be a struggle.

Wouldn’t it be great that instead of politicians, we had contractors and business owners in Parliament making the decisions? I’m sure the tax rate would quickly go down, and millions of self employed would enjoy filling out their tax return every year.

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Government Scrap Tax Grab, Admit Defeat

If you read this blog every week then you will no doubt remember how I reported on the cheeky tax grab the government tried to bring in at the budget.

The Chancellor, Philip Hammond, announced to the country he was going to tax the self employed whether they liked it or not. Well, millions of hard working Brits didn’t like it, and after a national outcry that no-one in the government expected, the Chancellor quickly back tracked on his plans.

At the time I mentioned how this was a victory for contractors, freelancers, small business owners, and self employed people all around the country, although I hinted it might only be a small victory, because no doubt those politicians would have another go in a few months.

It doesn’t seem that way now though, as the government recently admitted defeat on their unpopular tax grab, with Deputy PM Damien Green saying that it won’t be revisited.

Something tells me the Conservatives poor showing at the recent General Election might have a lot to do with this back track, as they make an attempt to get the millions of self employed people back on their side.

Rightly so if you ask me. Politicians seems to forget that it’s self employed contractors, freelancers and small business owners that prop up this fragile economy and keep everything running smoothly.

When it comes time to cast their vote many don’t forget how they have been treated by the government, and it’s no wonder that a lot decided to stay away during the recent General Election, or even vote for another party.

In my opinion, the Prime Minister and her cabinet really need to sit down and work out ways they can do more for our nations self employed army, rather than just looking at them as a way to make more money every time they need to get some cash.

Let’s face it, with Brexit just around the corner the self employed are now more important than ever before, so let’s hope they keep their word this time and we don’t hear any more talk about tax hikes.

Right now, as we speak, it’s estimated that 5 million people in the UK are classed as self employed, which is around 15% of the workforce.

However, with the gig economy continuing to get more popular and the freelance lifestyle something that a lot of people want to have…then it’s not surprising that many experts are expecting nearly half of the workforce to be in some form of self employment in 10 years time.

So when you consider that many of the voters in upcoming elections will be self employed, then it’s about time politicians started catering to their needs. Dropping the tax hikes is a good start.

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Contractor Plans Legal Fight Against IR35 Reforms

An IT contractor has taken the bold step of planning to take on the government and their IR35 reforms in a legal battle.

As you can no doubt imagine, this type of thing isn’t going to be cheap and that is why he is looking for donations to make it all happen. The cost of full legal action is expected to be around £360,000. Not exactly small change is it.

I’ve reported before about these IR35 changes of course, which came into force during April for contractors within the public sector and has mostly been unpopular.

In fact, some IT divisions within the public sector have seen thousands of contractors walk out once their contract was up, with many more planning to do the same once they get the chance.

Would a U-turn by the government on IR35 change contractors minds? It very well could, but I think many are probably doing just fine out there away from the public sector, maybe even making more money.

As I’ve spoke about in another blog post, contractors and their skills are more in demand than ever before, with many companies willing to pay top cash for those who want to put in the hours.

I’m sure there would be some who might consider a return to the public sector though, because the work is quite steady and predictable, which gives a bit of reliable income.

This legal challenge has got to make it into a court of law, and with over quarter of a million pounds needing to be raised it does make me wonder if we are going to see anything happen? Let’s wait to find out.

You don’t need to send any donations just yet, as the IT contractor has mentioned that any potential supporters should email and say how much they could donate on a monthly basis. £20 a month has been talked about.

The one thing I do know is that the government very often do change their mind. Just take the “making tax digital” plans as an example, where for months it seemed to be at the top of their to do list.

It now appears the plans for making tax digital has been scrapped, after a lot of hard work and millions of pounds spent, so it wouldn’t surprise me at all if one day some government official decided that IR35 should also be scrapped.

What can you do though? Most contractors will simply get on with their life and make the best of anything that comes their way. If the public sector is no longer viable then they look elsewhere, and if the public sector starts to seem more attractive again then I’m sure many will be back.

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Freelance Friendly Parties? The General Election Explained

It’s only 2 days until the UK General Election, and from what I’m hearing many freelancers and contractors are still undecided about who to vote for.

Many of the nearly 5 million self employed workers in the UK are wondering which party is concerned with the issues that affect many freelancers, contractors, gig workers, and small business owners.

Some pundits have said that a vote for the Tories might not be the best option, especially when you consider the recent tax grab they tried to get out of the self employed. Fortunately, people power won the day, and Mr Hammond backed down and decided to forget about more tax…for now.

I’m sure that many freelance professionals who normally vote Conservative might very well be thinking twice now, even to the point where they are going to vote for another party.

What are the other options though…Labour? According to some, they have been making the most “freelance friendly” noises during the campaign trail for the General Election, but if you ask me, it’s probably just a case of politicians making promises they wouldn’t keep if given the power.

One thing Labour leader Jeremy Corbyn has promised to do is keep National Insurance Contributions as they are…if the nation decides to elect him as Prime Minister.

Also, he has gone on record to say that Labour would be the voice of the small business owner around the country.

He would also scrap the Making Tax Digital plans, although if recent reports are to be trusted then it seems that it’s already been forgotten about.

Not only that, but Mr Corbyn has said that companies who pay freelancers late, or don’t pay at all, should be given tougher punishments. This is something I definitely agree with and an area where more needs to be done.

However, would the Labour leader follow through with his promises if given the keys to Number 10. Something tells me he wouldn’t…although something also tells me that he won’t be Prime Minister.

Who knows though? Most people were expecting a Hilary Clinton victory over Donald Trump and look what happened there…It’s now President Trump.

Also, who can forget the Brexit vote, with many so called “experts” predicting an easy victory for remaining in Europe…nobody really saw coming what did happen, and now as we speak Britain are negotiating an exit from the European Union.

Who knows? Maybe on Friday morning we will be waking up to a victory speech from Prime Minister Corbyn, and then freelancers and contractors around the country will wait to see if he delivers on his promises.

So who should you vote for on Thursday? That choice is yours, although if you really can’t decide then you might want to stay away and not vote at all this time around.

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New Figures Suggest 176,000 Self Employed People in Wales

Wales is quickly becoming the UK hub of self employment, with 176,000 now working for themselves. That is 32% of new jobs in the country.

Many of these people are no doubt contractors, freelancers, and gig workers, while others have taken the route of starting a small business in order to make their own income.

Take Tom Maunder for example, a car body repairer from Wales who had been made redundant 3 times. After getting his P45 for a third time he decided enough was enough, and instead of looking for another job went the self employment route instead.

Actually, he ended up buying the small company from where he had been given his walking papers before, thanks to a loan from his parents and a bit of savings.

This is the type of entrepreneurship I like to see among workers in the UK. Many people in Tom’s position could have simply given up and spent the next few years signing on down the local job centre, and this is what many people do.

However, Tom decided that if employers were not prepared to give him a chance then he might as well make his own opportunities, and that is why he has gone on to be a success, with help from his family along the way.

It just goes to show that self employment in Wales is still going strong, and as long as there are people like the Maunder family then I don’t think anything is going to change soon.

Around 1 in 5 new jobs in Wales are to do with self employment, whether it be contractors, freelance professionals, or small business owners, and it wouldn’t surprise me at all if in 10 years time this figure is 2 in 5 jobs…or even 50% of all new jobs.

The new figures do show that the area in Wales does matter when it comes to self employment, with towns that have historically been involved with industry having the lowest rate of people working for themselves, while areas that are more known for farming have the most.

In Powys it is said that 1 in 3 people are self employed farmers. Also, many of these rural communities in Wales have other businesses such as cafes, restaurants, and hotels, where the self employed do a great trade year after year.

Away from the town and villages we have the cities of Cardiff and Swansea, which are quickly making a name for themselves as the place to be in the UK if you want to work in freelance industries.

The cost of living in these cities in Wales is significantly lower than places like London and Birmingham, which means many gig workers are thinking about relocating to Wales.

So self employment in Wales is looking good, and things are only going to get better if you ask me.

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Sky News Sued by Freelance Photographer

A freelance photographer by the name of Eddie Mitchell isn’t afraid to take on the Sky Broadcasting Corporation, after it was announced he was suing them.

Eddie had given permission to a firefighter to use a picture he took of a building fire in Bognor Regis. This picture was then published through the Midhurst Fire Service official Twitter page.

Not long after the Tweet was published, Sky News, the popular UK news channel and website embedded the tweet in a related story about Storm Angus, and of course, it seems that this also included the picture that was taken by Eddie Mitchell.

This wasn’t acceptable to Eddie, who said that Sky News never did contact him for permission to use the picture. Because of that, he decided to take the matter to court and sue Sky News.

Worthing County Court to be exact, where he said in a statement that he did give permission to the Firefighter and his station to use the picture, but NOT to Sky News.

A spokesperson for Sky News has gone on record to say that they have “very strict policies and always seek permission when necessary” when using pictures from social media sites such as Twitter.

The news story which contained the copyrighted picture from Eddie Mitchell has since been removed from the Sky News website.

Who knows exactly what happened here, and I’m sure that Worthing County Court will look at all of the evidence and come to a conclusion on what should happen next.

The one thing I do know is that we are going to be hearing a lot more about this type of thing, as freelancers and contractors believe their work has been used illegally and without their permission.

It’s not always exactly clear what is and what isn’t copyright infringement though, with many companies and news outlets arguing that embedding a link to a tweet, or using a screenshot of a tweet that contains a copyrighted picture should be fair use.

In my opinion, more needs to be done to clarify the law around the subject of copyright, especially when it comes to social media.

Sure, freelancers and contractors deserve recognition for their work, as well as being paid their dues, but at the same time, when sharing a Tweet or Instagram post is as simple as clicking a button on your phone, then maybe unintended copyright infringement is going to be almost inevitable

Ultimately though, Sky News are in the business of getting website traffic to their news stories and profiting from that, and any use of pictures or other third party content should potentially be compensated.

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27% Leave School With No Career Advice According to Study

Just over a quarter of Brits leave Secondary school without any kind of career advice…that is according to a new study of over 2000 adults.

This has led to a whole generation of school leavers who are unsure of the career path that is right for them, with many deciding to stay in higher education rather than joining the workforce.

It might also be part of the explanation why so many people are now joining the ranks of freelancers, gig workers and contractors, because instead of going right into a career, they now take the time to explore different options before finally deciding that working for themselves is the best way forward.

The study also went on to give us some more interesting statistics, such as:

29% of workers are considering a career change soon, with self employment being high on their list of options.

Only 10% of those surveyed believed the career advice they did get in school was impartial, with many having the opinion that teachers and other staff were biased towards certain professions.

30% did know the career they wanted to pursue when leaving school, although many do change their mind after a few years in the workforce…with freelancing and contracting being good alternatives once they become dissatisfied with their boss.

A further 45% mentioned that teachers were often pushy towards getting students to go towards a career that required a university education, despite the fact that university fees have become way more expensive in recent years. This has led some people to wonder if teachers get a commission for recommending this path.

42% also said that parents were supportive of their career path, even if they decided to change course after a few years and go into something else like self employment.

My opinion on all of this is that career advice in schools is going to become less and less relevant, as students decide to educate themselves on what career path to pursue.

Thanks to the internet, it’s now possible to research potential careers and university courses by themselves, rather than having a teacher giving the information.

Also, I think we are going to be seeing more people wait longer until they make a decision about their career.

Years ago, you were expected to know exactly what path to take by the age of 18. These days, people are waiting longer, with many deciding to go travelling and experience the world before making a decision

It’s not uncommon for a 25 year old to still be considering career options, with freelancing, gig working, and contracting being popular options once they do decide to enter the workforce.

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40% of Brits will Never Retire According to Survey

In a brand new survey by experts, it was found that 40% of British people in the workforce believed they will never get to retire.

This isn’t because they don’t want to of course. No…it’s because they won’t have enough money to retire, which means they will be have to keep on working well beyond the retirement age into their 70’s and even 80’s.

In my opinion it isn’t just employed people that should be thinking about this, contractors and the self employed in general must also be planning for their retirement.

As I’ve talked about before on this blog, there are many contractors who simply don’t save any money for retirement and don’t put anything into a pension, instead, hoping to rely on the State Pension to take care of them when they get to 65.

Well, some news for anybody expecting to do this. For one, the eligible age for a State Pension is going up soon, to 67 I think, although many experts predict it could be 70 in the near future. If you still have 30 years to go until you are around retirement age where will it be then? It might very well be 80! That is if there is any such thing as a State Pension by that time.

Not only that, but a basic State Pension doesn’t provide you with much money on a weekly basis, and with everything getting more expensive it really is nothing more than spending money for most people.

That is why I am always telling contractors, gig workers, freelance professionals…whoever…you must be putting some money away into a pension or some kind of savings. If you don’t then you probably won’t ever retire, just like the 40% of people asked in the survey.

Interestingly, there was differences of opinion in the survey depending on where you lived. For example workers in London didn’t have much optimism about retiring, with 45% saying they will always be clocking in, while only 32% of people in Scotland agreed.

Maybe North of the border they know something that people in the capital don’t know? Or perhaps they are just more educated when it comes to saving money and being smart about pensions? I think that is probably right.

There are some contractors who don’t ever want to retire though, and in actual fact they would call themselves already retired.

These are the people that work from their laptop, working a few hours that suit them but using most of their time taking breaks to do things they enjoy. A good lifestyle if you can get it, but for most Britons this isn’t a reality.

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New Mortgages for Self Employed Launched

I’ve talked before on this blog about how difficult it can be for contractors to get a mortgage or any kind of loan. For many people it’s almost impossible.

It has just come to my attention that two companies are trying to change that, by launching a new range of mortgage products that are aimed at self employed people.

In other words, if you are a contractor or have an umbrella company and you want a mortgage, then it could just be the solution you have been looking for.

Paragon Mortgages and The Mortgage Lender are the two companies offering the new range of mortgages, with an emphasis by both of them on lending to people with “complicated sources of income.”

If you’ve applied for mortgages before, only to be told the only way to get accepted is to provide 10 years worth of wage slips or to have initial enthusiasm from a lender, but then to get declined when you tell them you are self employed…maybe this could be the answer? It is worth getting in contact with these companies if you ask me.

I’ve always got self employed people telling me they just can’t seem to get a mortgage, with the main reason being their income is not as easy to work out as someone who is employed in a job.

Not only that, but when you have only been self employed for a year or two, then mortgage companies are going to be a bit more hesitant in giving you the cash.

This isn’t the wild west days of lending that we witnessed a few years ago. We can be thankful for that of course, because if it continued then the UK economy was heading for disaster.

However, it is possible that lending has gone a bit too far the other way just recently, especially for self employed people, and I think that needs to change. Let’s wait to see if it does with these two new mortgage companies entering the scene.

A spokesperson for Paragon Mortgages said, “customers with complex incomes looking for a residential mortgage deserve access to a wider choice of mortgage products.”

Typically, with a bank or any kind of mainstream lending company, they will process your application using their automated technology As soon as it comes to the part where you are self employed, their system automatically declines your application.

With specialist companies such as Paragon Mortgages and The Mortgage Lender, they are more prepared to look at your situation and spend time going over the smaller details. That doesn’t mean you are guaranteed to get accepted, but at least you know you will get treated fairly.

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Guy Left Shocked After Boss Rewrites his Resignation Letter

Chester Ang is a call centre worker who decided it was time to become self employed, so he handed in his resignation letter.

You won’t believe what happened next…

His boss, who he’d worked for during the last two years, basically decided to rewrite the resignation letter so the main theme became a tribute to himself.

No doubt trying to gain favour with his superiors, but don’t you think it’s worrying that people are doing these kind of things? All the more reason to get out of being an employee, and move towards self employment…whether it’s running your own business or being a contractor.

What’s next…a boss rewrites a resignation letter so that it becomes a “I want to stay” letter? Or how about signing a contract on an employee’s behalf, giving them less pay with more hours? It’s quite amazing really how far some people will go.

Anyway back to the story…we have Chester who decided to quit so he could open his own pet shop. Nothing wrong there of course, as he gave the 1 weeks notice that was expected of him and then he was free to do whatever he wanted. It’s good to see someone willing to get out of the 9 to 5 routine and be prepared to go it alone.

He wrote a brief resignation letter basically saying “I quit and I give 1 weeks notice, Best Regards, Chester.” Again, nothing wrong there, as resignation letters don’t have to be worthy of a novel, just a simple thanks for the job and see you later is fine.

So you can imagine how shocked Chester was when he intercepted the letter before it was passed to the more senior bosses, only to find that his boss had added in praise about himself saying that he wanted to thank him for “mentorship and guidance” among other things.

Well, Chester didn’t agree with these extra comments, as well as the whole notion of his resignation letter being rewritten without his consent.

Who does this boss think he is, and why should he be allowed to get away with it? This is why Chester decided to get rid of the letter, write out a new one with his original comments, and then take it directly to the senior bosses himself.

The reason? Because if he’d wanted to give praise to the boss then he would have done so, but ultimately, he didn’t, so why should he put up with this guy changing the theme of the letter.

Much to Chester’s credit he decided not to make any complaints about the boss or mention the incident to the company, instead preferring to make a quiet departure so he can focus on his new business.

Good for him, and let’s hope that his new business is successful so he never has to go back to work for someone else.

It’s like what I keep telling people…if you want to become a contractor, freelancer, or start a new business then you should go for it.

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Research Suggests IT Contractors are Confused

We all know that IT contractors are in huge demand right now around the UK, but it seems that many of them may actually be confused.

How so? Well, new research has uncovered that many of these IT professionals are confused about the contracts they have with many of the leading tech firms.

As we all know, these umbrella contractors work on a temporary basis, many with contracts that range anywhere from a few days to a couple of months, although sometimes it can lead to a more permanent arrangement

The research suggests that 70% are confused about their contracts, with the majority of those surveyed admitting that they need help better understanding the written agreements they currently have.

To put it in plain English, a lot of these tech firms like to hide things away in the terms and conditions, and very often, this doesn’t work in the favour of IT contractors. It’s not uncommon to see contracts ended early or pay to be withheld, all because there is small print hidden away in the written agreement.

Let’s face it, the vast majority of umbrella contractors are not lawyers and do not have a law degree. This means they are often at a disadvantage when negotiating with these big firms and it is far too easy for them to get a deal that doesn’t benefit them.

I’ve been saying for years that umbrella contractors need more free support when it comes to negotiating their contracts, and it should be the government offering this kind of service.

Not only that, but watchdogs need to look more closely at the behaviour of some of these tech firms and their big powerful legal teams, who are usually more than happy to put the contracts completely in their favour, even if it means the IT professionals lose out.

Luckily, it appears that things are being done to help out those most in need. One example is a 3 part guide that has just been commissioned, which has the goal of solving many of the problems that umbrella contractors have when negotiating deals.

This is definitely a step in the right direction, and it just goes to show there are resources available for IT contractors, and any type of contractor, that wants to get more knowledge when it comes to the negotiating table.

Now of course, I’m not saying that everything should be in the contractors favour and that technology firms should just let them call all of the shots. It’s just that if the playing field is a bit more level then everything will become more fairer, which in the end should result in more productivity, which in turn is better for the economy.

At the end of the day, in this post Brexit world we need to be supporting each other more than ever, so that our country can get the economy it deserves once again.

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