Christmas seems to come earlier every year but most people, especially contractors, don’t plan that far ahead. But regardless of what sector you’re in, or whether you’re a freelancer or an umbrella contractor, financial preparation could mean the difference between a Christmas full of ho, ho, ho rather than woe, woe, woe.
For many, Christmas represents a slowdown, with many contracts finishing year-end or stopping mid-December to coincide with an organisation’s festive holiday period. Even the bank holidays can force a week’s stoppage for some. So it makes sense to make provision with your finances from at least the autumn to tide your over this potentially quiet period. And of course, even if you get holiday pay, you need to ensure that you’ve put away extra cash to fund this very expensive period of jollity. No one can fund Christmas out of one pay cheque and you don’t want to revert to borrowing money.
For those that Christmas represents their busiest time of year, it’s critical to plan for some R&R – regardless if your client demands that you work throughout the silly season you need to be able to take some time out, even if it’s to get ready for the new year.
This readiness involves ensuring that new contracts are in place for 2014 and that your business housekeeping is up to date including; organising your receipts and other supporting paperwork for January’s self-assessment, updating your policies and even taking time to check your tax code.
Contractors should also pay particular heed to George Osborne’s Autumn Statement on December 5th, when we hope he will outline measures to boost job creation and more confidence within the UK’s businesses. Of more specific interest to the contracting community is the speculation that further changes to IR35 will be announced – nothing radical, but simplification of a daunting piece of legislation has flummoxed contractors since its inception could be in the offing.
Apart from this little bit of holiday homework, we are sure that it will be a very Merry Christmas and by all accounts a much more prosperous New Year. May we take this opportunity to wish you all a wonderful festive holiday and let you know our Christmas opening hours:
