Contractors FAQS

A. No. Just as before, you will negotiate your rates with the agency or company hiring your services.

A. As a freelance contractor you will be eligible to claim for tax-deductible expenses, which on average, could net you an additional £200.00 per month.

A. No. Equitable will raise and send professional invoices to the agency or company on your behalf.

A. Equitable will calculate your approximate tax liability and make regular payments to HMRC ensuring you’re always up to date. At the end of the year we will calculate your income and expenses for submission to your tax office and you may even receive a small rebate. We leave you with very little to do.

A. No. You will be paid by Equitable in line with the terms agreed between you and the agency or company hiring you, directly into your bank account by BACS or Faster Payment and we will let you know it’s there automatically by text message.

A. No problem at all. You are free to move jobs at any time. If you wish to continue enjoying the service we provide, simply give our details to your new agency or company.

A. Absolutely nothing. Our service to you is free of charge…our fee is paid by the agency or company.

A. It is of course your choice; but we leave you with very little to do and ensure your employment records and tax affairs are correctly documented and right up to date. On average, contractors working with Equitable save between £350.00-£400.00 a year by not hiring their own accountant.

A. If you’re self-employed you pay Class 2 and Class 4 National Insurance contributions. The rates are:
• Class 2 National Insurance contributions are paid at a flat rate of £2.65 a week
• Class 4 National Insurance contributions are paid as a percentage of your annual taxable profits – 9 per cent on profits between £7,605 and £42,475, and a further 2 per cent on profits over that amount.

If your profits are expected to be less than £5,595 you may not have to pay Class 2 National Insurance contributions.

Your Class 2 National Insurance contributions payments are due on 31 January and 31 July, the same as a Self Assessment tax bill. You pay Class 2 National Insurance contributions either monthly or six monthly by Direct Debit

You pay Class 4 National Insurance contributions when you pay your Income Tax.

Class 2 National Insurance contributions payment deadlines
From April 2011 if you’re self-employed you can pay your Class 2 National Insurance either monthly or six monthly by Direct Debit, or pay in response to payment requests HMRC issue in October and April. The table below shows the due dates for payment of Class 2 National Insurance contributions for 2012-13 . You can also make one-off payments for any arrears you may owe.