What stage are you at

One of the most common barriers to going freelance is the loss of your employee benefits package but there are a number of alternative products which help to cover this. We have specialist financial advisers to offer 123 clients access to advice on everything from mortgages to pensions, insurance to investments. With their help, you can make the move to freelance contracting whilst still enjoying the benefits package you’re used to.

This breakdown shows you how easy it is to replace lost employee benefits with a contractor specific solution that is tailored to your needs.

An employee pension scheme

Contractors can choose to personally fund a pension scheme or alternatively, your Ltd company can fund a scheme on your behalf which can help to significantly reduce your corporation tax bill. You can invest up to 100% of your earnings into a pension as long as you don’t exceed the annual allowance of £40,000.

The good news is that you get far more control over how your money is invested as you are no longer confined to your employer’s scheme. This gives you the freedom to choose a pension with low annual charges and a fund selection that suits your attitude to risk and plans for your future.

Find out more about Contractor pensions

Sick Pay

An accident or illness that prevents you from working can have a serious impact on your finances when you are freelancing as your income relies on your ability to work. However, there are a number of insurance products aimed specifically at business owners which will pay an agreed monthly income until you are well enough to return to work.

Find out more about Contractor Income Protection

Find out more about Contractor Critical Illness Cover

Death in service cover

Providing the peace of mind that your family is financially protected if the worst happens, death in service benefit is often one of the most sought after benefits for employees. Thankfully, Contractors needn’t miss out on this essential cover as you can arrange life insurance which will pay out a lump sum on death. You can choose to cover yourself up to a certain age e.g. 65 or for the whole of your life so you know you are protected.

Unlike death in service benefit which is simply based on a multiple of your salary, the amount protected by life insurance can be as little or as much as you choose. This means you can arrange for your mortgage to be paid off completely or you could leave a substantial income for your loved ones so you know they will be financially secure if you are no longer around to pay the bills. If you are concerned that your family may struggle to manage a lump sum payout then you can opt for Family Income Benefit which pays a set monthly income to your dependants instead.

You can now pay for your life insurance through your ltd company and save tax on the premiums thanks to an innovative product called Relevant Life Cover. This allows you to take advantage of the same benefits and tax savings as a large employer arranging death in service benefit.

Find out more about Contractor Life Insurance

Private Medical Insurance

If you work for a large employer then you probably have access to Private Medical Insurance but going freelance doesn’t have to mean long NHS waiting lists when you fall ill. You can arrange Private Medical Insurance through our advisers which will offer you the same, if not better cover than your employee scheme. You can even protect your family with your policy and there are a number of discounts available depending on the cover you choose.

Find out more about Private Medical Insurance

Company Car

If you currently enjoy the use of a company car then there is no reason why you couldn’t fund one through your ltd company. If you decide not to get a car then travel costs can still be offset as expenses and paid through the company to save tax so you could end up saving money on your travel costs.

Mortgages

Some would-be Contractors worry about their chances of buying a new home or re-mortgaging an existing property without a regular salary and payslips each month, but this needn’t come between you and the freedom that contracting can bring.

Our mortgage adviser partners can arrange your mortgage based on a multiple of your annualised contract rate or your company’s annual turnover or profit or your total personal income - lots of options.

You don’t have to be a freelancing veteran to secure a contractor mortgage and you can even apply on the very first day of your first contract so there is no need to postpone your plans for home ownership.

The experienced team at our mortgage brokers will handle the entire mortgage application process for you, from your initial enquiry to you getting the keys to your new home; the advisers are on hand to guide you through. This not only helps the process run smoothly and quickly but also frees up more of your time to concentrate on keeping your client happy.

Find out more about Contractor Mortgages

The value of investments may fall as well as rise and past performance is not a guide to future returns.

Your home may be repossessed if you do not keep up repayments on your mortgage