As the UK’s tax burden rises, you can reap the rewards of being your own boss
It’s no secret that the UK’s tax burden is now at its highest level since the Second World War, equivalent to 40% of GDP. Along with inflation and the cost-of-living crisis, everyone is feeling the pinch. As income tax thresholds are frozen, many are also feeling the icy blast of fiscal drag!
So, could becoming self-employed be the answer to boosting your income?
If you have only ever been an employee, you will have had tax and national insurance contributions deducted at source through the PAYE (pay as you earn) system by your employer.
This system is very rigid, as a taxpayer you have no choice and no discretion about what and when you pay.
As self-employed consultants, Nexa’s lawyers enjoy the organisational freedoms and flexibility of being their own boss but there are also advantages when it comes to tax.
Our tax specialist Femi Ogunshakin takes up the story…
“Working with Nexa as an independent contractor, there are several differences in the way you are taxed when compared to being an employee. These can enable you to have much more freedom over the money you earn. Depending upon your own circumstances, these may be particularly helpful to you.
Flexibility is fundamental
Lawyers at Nexa may provide their services through a personal service company (a corporate entity which is entirely at arms’ length from Nexa) but they don’t have to. Depending on what they prefer and what suits their own circumstances, they may engage with us personally.
Last but by no means least…
Over to Femi again:
“The most important thing to remember is that everyone is different, and everyone’s circumstances are different, it’s therefore really crucial to talk to the experts early on and get the right professional advice – it’s always a good (tax deductible) investment!”
Nigel Clark, CEO of Nexa adds:
“Our primary objective is to ensure that the Nexa model operates in compliance with the current legal requirements specified by HMRC while also delivering on our promise of ‘friction free lawyering’. Our consultants always have choice, but are responsible for administering their own companies (if they have them) through which their services are supplied and completing and filing their own tax returns and other corporate documentation.”
This article is for information purposes only. It should in no way be considered legal advice and no reliance should be placed upon it. All readers are urged to take their own professional tax advice regarding their own specific circumstances.