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Contracting Options

The route you choose to take whilst contracting will depend on your individual circumstances, your specific needs and the requirements of the contract or temporary role that you undertake.

Whilst we cannot recommend one particular route over another, Hudson can support you as a Temporary Worker/Contractor via the following methods:

Pay As You Earn (PAYE)

Often considered the simplest approach to contracting, working as a PAYE (Pay as You Earn) contractor means that Hudson will deduct all the relevant levels of Tax and National Insurance for you. Upon submission of an authorised timesheet from you, we will pay you a net amount. This option is most commonly used by contractors engaging on contract work in the short term or those who do not want the added cost or burden of administration and paperwork responsibility that comes with running your own company.

Umbrella Company

Choosing to sign up with an Umbrella Company is similar to operating on a PAYE basis, however the Umbrella Company becomes responsible for deducting your Tax, National Insurance and any other relevant contributions. With this option you will be engaged and paid directly by the Umbrella Company and may be able to claim some business related expenses.

Hudson operate a Preferred Supplier List of Umbrella Companies that we work with. For further information on our Preferred Suppliers and how they may be able to assist you during your contract please contact your Hudson Consultant.

Personal Services Company/Individual Limited Company

Setting yourself up as Director of a Limited Company essentially means that you are running your own business. You will be responsible for the affairs of the company, including operating the bank account, arranging insurances and ensuring that the correct levels of Tax and National Insurance are made to HMRC. This option is commonly used by long term contractors whose operating practices mean that they are in business on their own account, engaged in a profession and consider themselves to be genuinely self employed. There are of course inherent risks as well as advantages to setting yourself up in business so we would encourage you to seek independent financial advice from a tax advisor or qualified accountant to help you gain a better understanding of whether this option would suit your circumstances.

For more information on Limited Company contracting please refer to our comprehensive guides:

If you would like more information on the options available to you as a contractor through Hudson, please refer to our Contracting - Making The Right Choice guide.

*Please Note*

It is entirely your decision on the route you decide to take and we would encourage you to seek independent financial advice.

If you wish to discuss with us the options that are available to you, please contact your Hudson Consultant directly.

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