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 Understanding what expenses are allowable by the Inland Revenue can be confusing and frustrating. Mistakes calculating taxes can be costly, with fees and fines costing as much as the back tax owed, not to mention the possibility of time in prison if you are found guilty of tax evasion!
Fortunately, working with an umbrella company can relieve the freelance contractor of those headaches by absorbing the paperwork and the responsibility for compliance. You simply hand over your paperwork and receipts; the company does the rest, leaving you assured that you won't run afoul of compliance regulations. Using an umbrella company allows you to maximize your allowable expenses while ensuring compliance. By filtering claims, the company helps protect clients from tax evasion accusations.
Claims must be supported with receipts, and should be incurred wholly, exclusively and necessarily in performing the duties of the particular job. Allowable claims include meals (but only in certain circumstances), necessary travel, and other incidentals. In general, there are two types of claims. Chargeable claims are items or expenses that the company has agreed ahead of time to reimburse. Often, chargeable expenses are handled through an accounts department.
Like chargeable claims, non-chargeable expense claims require receipts, but instead of being directly reimbursed, non-chargeable expenses are used to reduce your tax liability. It is important to keep receipts to back up non-chargeable claims for six years, the limit on potential audits by HMRC.
Non-chargeable claims are not inexhaustible. The circumstances of a job including claimable expenses are quite specific. First, the job must not last for more than two years for the job site to be considered temporary. From the time you are aware that the contract will extend beyond 24 months, claims are no longer allowable. It is important to understand the claiming rules, so that you remain compliant. Moving sites won't extend the time in which claims may be filed. Nor will creating a new contract with the client.
Travel to and from a temporary work site is claimable, to cover the costs of fuel, maintenance and insurance cover. If your client allows mileage as a claimable expense but doesn't meet the allowable limit of 40p per mile, you can claim the difference. Car hire or public transportation is claimable as well, but you must have a valid receipt for tickets.
Meals and the cost of a hotel or other rented accommodation are claimable as well, as long as the rental you are paying is in addition to your primary residence. Clothing is only claimable if it is considered protective in nature or is a uniform required by your contract. Professional subscriptions, insurance cover and certain medical expenses, like eye tests and the cost of contact lenses or glasses, may be claimable, if they are related directly to the job. Charitable contributions and pension contributions may also be claimable expenses, and are processed automatically as a tax benefit. Using an umbrella company saves businesses the time and trouble of keeping track of the complex compliance regulations and protects workers and companies from liability, making outsourcing payroll a sensible business decision.
 Most people understand that a college degree gives graduates huge advantages in the job market. What is less well understood is the fact that this beneficial effect of further education is amplified during times of economic distress. In recent years, the general unemployment rate has hovered around nine or ten per cent, but the unemployment rate for those who hold a college degree has been half that. The ability to find a well-paying job when opportunities are becoming scarce is invaluable, but this is only one of many ways in which a college degree can help you to kick-start your career.
A World of Opportunities
Employers hire based on the knowledge and skills that a prospective worker can bring to a firm. Pursuing a college degree provides students with a well-rounded educational base that enables them to tackle diverse challenges for the remainder of their lives. It may seem that a course in medieval German literature has very little to do with the real world, but apart from every other consideration, university-level coursework helps students to acquire two vital things that most employers desire: critical thinking skills and an understanding of how to go about learning new material.
Employers know that an applicant with a college degree has already mastered these essential areas. Such workers can be assigned unfamiliar tasks, yet will need only a minimum of guidance and training because they can learn further material on their own in a quick, efficient manner. This major benefit from college happens no matter what subject you choose to major in.
Financial Rewards
College is a large investment of both time and money, but virtually every economic analyst who has studied the matter has concluded that it is one of the very best investments that a person can make. The United States Census Bureau has concluded that both job security and average pay increase in very nearly a linear relationship to the amount of college education an individual has acquired, making it well worth the effort of searching out the low interest student loans that can make higher education possible. Indeed, it is estimated that within just 15 years, millions of jobs in the United States will be vacant for lack of applicants educated enough to do them.
Actual monetary figures also bear out the financial value of a college degree. The average lifetime earnings of a person with a bachelor's degree exceed $2 million, which represents a $500,000 increase over the same figure for someone with only a high school diploma. The average cost of going to college is much less than half a million dollars, which means that earning a degree makes perfect financial sense.
Few investments are such a sure thing that it is wise to borrow, but gaining further education is one of them. Most people cannot afford to pay for one year of college with cash, let alone four or five years, but fortunately many loan programs exist to help. The best way to finance a college education is to look for low interest student loans. Even if you can afford to start college without aid, you may find that being able to continue in the face of rising interest rates is only possible through strategic borrowing.
 U.S. citizens currently have more than $2.4 trillion dollars in debt. If you’re in that number, you have to tread carefully if you want to be sure you’re making the moves that decrease your debt instead of making it go up. Here are some debt mistakes you should be sure to avoid.
Making minimum payments or take your time paying it off. There’s one universal truth about debt and that’s that minimum payment are very expensive and time-consuming. Sticking to the minimum means you’ll pay a tremendous amount of interest and pay your debt off over the longest period of time.
Add to it before you pay it off. Perhaps what’s worse than paying the minimum on your debt is increasing it faster than you’re paying it off, even if you are paying extra on all your accounts. Avoid adding more debt on top of what you’re already dealing with. Pay off some of your existing debt before you take on any additional large expenses.
Being in denial about how much debt you have. A head-in-the-sand approach to your debt doesn’t mean your debt doesn’t exist and your debt won’t go away just because you ignore it. Ignoring your debt will never end well. It’s better to know what you’re dealing with no matter how much you may end up disliking the truth.
Taking too long to figure out a solution. It may not be obvious, but there’s a clock ticking on your debt. If you take too long to decide how you want to deal with your debt, you may run out of better options, leaving you only with bankruptcy.
Missing payments on any of your accounts. Whether it’s intentional or a genuine mistake, missing a payment on your debt can set you back several months. Not only will you have to pay the late fee, you’ll also have to make up two payments instead of one. Unfortunately, if you can’t afford to catch up, you could end up too far behind to catch up.
Borrowing from one creditor to pay off another. Robbing Peter to pay Paul won’t reduce your debt, especially if you don’t have a good plan for paying off either. The exception is when you seek an affordable debt consolidation plan to conquer your debt. Even then, you still have to be careful to avoid all the other debt mistakes on this list.
Trying to pay off your debt without changing your lifestyle. Perhaps one of the biggest things keeping you from paying off your debt is the lack of money to fund your debt plan. If you never scale back your lifestyle and reduce your living expenses, you may never come up with the extra money necessary to get out of debt faster.
In life, some mistakes are to be expected. However, when it comes to your debt, it literally pays to avoid making big mistakes. Making the right debt decisions is crucial to making your get out of debt plan work.
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This guest post was written by Eliza Collins, a personal finance writer specializing in saving strategies, alternative income and debt relief options. You can read more of her articles at the debt settlement blog.
 Clothes are a part of many families' monthly budget, along with food, utilities and other expenses. However, clothes can become one of the most expensive bills for a family. To remedy this, many people are doing their clothes shopping at outlet stores, salvation armies and thrift stores. However, you do not have to do this to save money on clothes. Consider these three tips to help you save money on your clothes.
1. Buy online
Sometimes, you can find great deals on clothes by buying online. This is especially true for people who live in an area that does not have many great clothes stores. For example, you may have a clothes store that sells great looking clothes, but they are too expensive to purchase. You can probably find those same clothes in an online clothes store for half the price.
This tip is great for people who need to purchase clothes for various activities. For example, if you play basketball or golf, you may have a hard time finding great basketball clothes or great golf clothes in stores. Therefore, you would need to purchase these clothes online.
Additionally, you can save gas money by buying online. Most people drive more than 30 minutes to get to a mall that has decent clothes stores. Save the gas money and buy online.
2. Use coupons
Most people associate coupons with food items, but there are many coupons for different clothing stores, such as Aeropostale, American Eagle, Buckle, Victoria's Secret and other clothing stores. Most people obtain these coupons during an in-store purchase, but you can also receive them by signing up for a monthly or weekly newsletter from each clothing store. Additionally, some clothing stores have loyalty card programs in which you can enroll.
You can also obtain redemption codes for online purchases. These are usually included within each email newsletter from the clothing company.
3. Wait for in-store sales
Many clothing stores have sales throughout the year. You do not need to wait for Holidays to come around before you shop for clothes. Search for stores that have great deals at the moment. Some stores have in-store discounts every week. Aeropostale is one store that always has special sales or discounts on clothing.
You should also look for stores that have a clearance section. Most of the time, the clothes on clearance are in perfect condition. The store manager is simply making room for new merchandise by putting the old merchandise on clearance.
You don't have to settle for less than great when there are many ways you can save money on top-quality clothing. You just have to be a little creative and patient.
 In today's economy, everybody is looking for a way to save money. While most are working on their budget, others are looking for alternative methods to save money. One great alternative way to save money is by using utilizing the Internet. Most people assume that the Internet is only used for information or social media, but there are great websites that help people cut back on their monthly expenses. Here are three ways you can save money with the Internet.
1. Buy Used
Sites like eBay and Craigslist make it very easy for consumers to purchase used goods. Amazon is also a great site for finding deals on various items. These sites are free to join and easy to use. While there is a risk of being scammed, especially on Craigslist, each of these sites have detailed instructions to help you identify a possible scam. Moreover, some sites have insurance policies that protect consumers from scammers.
2. Big Deals
By now, many families understand how important it is to save their coupons. Well, there are websites that help shoppers save even more money by offering online coupons. Groupon, a website that quickly grew in popularity, offers various discounts and coupons to members. Millions of Americans save money online by using the discount codes they receive from Groupon. Moreover, most of these coupons can be printed out and used in stores. Groupon is also available as a geo-location app, allowing consumers to find local deals.
3. Free Calls and Messaging
Most people are used to paying for an expensive cellphone bill. These bills can get as high as $300! For some people, that is as much as their car payment. Luckily, there are ways to reduce and even eliminate these high phone bills -- free calls and messaging on the Internet. You can use your email address to text cellphones. Most carriers accept texts from email addresses. Additionally, many people use free Internet programs like Skype to make video calls. Also, consider this: Most people have Facebook mobile activated for their phones. If you IM or message your friends, there is a good chance they will receive the message as a text on their phone. That is also a free way to text.
With a little creativity, you will find multiple ways to save money using the Internet. Start using these tips in your lifestyle to help you save a buck.
 Thanks to the economy, many people are returning to college to get a better education. More people understand just how important an education is to obtain a professional career. In fact, many college graduates are pursuing their Master's degree and even Doctorate. However, obtaining a post-education can become expensive. To help you offset some of these costs for college courses, here are some tips.
1. Take Online Classes
These days, returning to school can be really stressful, especially for working professionals who may have a life and family to take care of. Because of this, many people are taking their college courses online. Taking online classes is not only convenient, it is also inexpensive. There are no meal plan fees, library fees, college campus fees and other fees associated with in-person learning. Moreover, many of the Nation's top programs can be accomplished online, such as IT degrees, criminal justice, Business and software development.
2. Buy Used Books
College veterans know this tip all too well. Unfortunately, so many people still pay for brand new books, even if they can purchase them used. Purchasing used books can save you hundreds of dollars. Too many people are spending well over $400 in their first week of college on books alone.
You can visit sites like Half.com or check your college's bulletin board for students who are selling books you need. You can also see if your classmates will share their book with you.
3. Choose An In-State School
Universities are a great social experience, but not very practical for the average college students. Unless you aspire to become a great Doctor, Lawyer or nuclear scientist, you probably don't need to attend a university. Your community or in-state college probably has many great programs that you can benefit from. Technical colleges are also a great option, as well.
4. Do Your First Two Years At Community College
For people who absolutely need to attend a major college, try obtaining most of your credits at a community college. It is common to see students get an Associate’s degree or simply finish two years at a community college and then finish the rest of their education at another college. This will help offset some major expenses and give you a greater learning experience, allowing you to learn from various teachers with the same expertise.
5. Try To Land A Scholarship
Most people assume that all the scholarships are awarded to high school graduates. However, there are many scholarships for people of all ages, ethnicities, backgrounds, experience and education. In fact, there are scholarships and grants that are specifically awarded to adults who are returning to school. This is free money, and you should apply for every scholarship possible. A simple Google search can bring up a list of scholarships that match your criteria. You can also talk to a college counselor or financial aid representative about various scholarship programs available.
Don't let money stop you from advancing your career. In these troublesome times, it is essential to take your education seriously. If you want to return to school to start or finish your education, then you should take your first step by talking with a counselor about various ways to save money. Soon you will be on your way to earning the education that you need.
 Debt is a liability best avoided. Purchasing items with cash protects you from that liability. However, this isn’t always possible and financing is available for such cases.
Before taking on a new debt consider the following questions: Is this something you need but simply cannot afford to pay for outright? Will the purchase appreciate in value? Can all of the monthly expenses related to the purchase be paid comfortably? There are a few instances where the answer to those questions can be yes.
Mortgage
Finding a great deal on a house is far easier today than it was before the real estate bubble burst. However, paying for a house outright just isn’t feasible for many people. Fortunately, houses increase in value, and financing a prudent amount can be a wise investment versus paying rent.
A large down payment is always favorable when purchasing a home. Twenty percent or more down payment gets rid of the need for private mortgage insurance, or PMI, which protects the bank in case you stop making payments. Consider choosing a 15-year mortgage if possible. It means a slightly larger monthly payment, but will save you thousands of dollars in interest, making the investment more profitable.
Car
In many locations, a car is a necessity. Having reliable transportation to get to work is right up there on the list of priorities with food and shelter. Because a vehicle is so important, financing one can be a good decision.
Set a budget before shopping for a new car. Determine ahead of time how much you can comfortably afford per month. And remember, a financed car means higher insurance rates because comprehensive and collision coverage are required by the lending agency. Take that into consideration as you determine what you can afford. Also remember that a new car depreciates very quickly after being driven off the lot and so a reliable used car is a very wise choice.
Education
Investing in education is great way to spend money, providing the student with a life-long asset. Like purchasing a car or home, financing an education should only be done after other cost-cutting methods have been employed.
Many students are eligible for federal financial aid. Scholarships also abound for those willing to take the time to locate and apply for them. Even with all of that help, there usually tends to be a need for more financing. In that case, federally backed student loans are available to students with need. These loans offer very low rates and students do not need to begin repayment until after they graduate. In some cases, the interest paid on these loans is tax-deductible.
Money spent on these debts will yield greater dividends in the end. A home can build considerable equity; a direct way to validate your investment. Or the result can be indirect, as in the use of a car to take you to work where you will grow your income. Either way, good debts are investments that will yield a high return.
George Gallagher is a finance and education blogger. He helps students with their own debt with not-for-profit student loan consolidation.
 In this economy, families all across the nation are searching for ways to lower their spending. Instead of removing things from their budget, there are other ways to reduce their monthly expenses. Consider these three tips to help you lower your spending.
1. Cook at home
Some research suggested that nearly half of all families are accustomed to eating out more than three times a week. Initially, it does not seem too expensive to eat out, especially at fast-food restaurants, but the monthly totals can equal hundreds of dollars. In this economy, even just one-hundred dollars is a lot of money.
Additionally, some people state that cooking at home can become expensive, as well. However, with smart shopping, ingredients can be purchased at a fraction of the cost of eating out.
Moreover, along with saving money, eating at home is a great way for a family to spend time together. Dads can use their BBQ smokers to make some great food for the family.
2. Buy generic
Most people are accustomed to brand-name foods, such as Kraft, Kellogg’s and other popular food brands. While it is true that these foods contain better quality ingredients, their counter-parts still contain some quality ingredients, as well. Moreover, generic foods are inexpensive, compared to brand-name foods.
Additionally, though the ingredients are slightly inferior, most people can not tell the difference between generic foods and brand-name foods. Plenty of taste tests have been conducted to prove that statement. This is especially true for soft drinks, something that most people are meticulous about.
3. Bottle your own water
This tip can greatly help families save money each month. Bottled water is generally safer and healthier to drink. However, bottled water is expensive. Families can save money by boiling their water or using a water filter. Both methods remove impurities from tap water, making it safe to drink. Once the water is clean, you can then bottle the water.
Boiling water is free, but some people don't like the aftertaste of boiled water. Alternatively, water filters produce pure water, but quality water filters can be expensive. Moreover, most water filters require monthly maintenance -- changing filters and cleaning the purifier.
Living during these times is hard, but it is not impossible. With a little creativity, families don't have to sacrifice certain luxuries within their lifestyle. Sometimes some small, simple changes are more than enough to help even the most financially struggling families save money each month.
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