Ben Rogers of Power Mortgages Ltd (www.powermortgages.co.uk) gives the low down on Relevant Life, a type of life assurance plan which is paid for by your own Limited Company so works in a more tax efficient way than a standard life assurance policy.

What is a Relevant Life Plan?
A Relevant Life Plan is an individual ‘death in service’ life policy. It is a term assurance plan designed to pay a lump sum benefit if the person covered dies or is diagnosed with a terminal illness during their employment, within the term of the plan.
Relevant Life Plan’s are similar to most other types of life cover but can be a very useful tax efficient alternative providing valuable death in service benefits for you as a Company Director and any employees of your Limited Company.

Added peace of mind tax free
The unique way in which Relevant Life Plan’s work mean you can effectively have the taxman help pay for the cover. While the cover is personal to you the policy counts as an allowable business expense so it’s tax deductible, doesn’t count towards annual or lifetime pension allowances and is not classed as a benefit in kind.

Premiums paid to a qualifying Relevant Life Plan will be tax deductible for the Employer and will not be assessable on the Employee. The sum assured when paid will not be subject to income tax either, nor will it be included in the taxable estate of the Employee for inheritance tax (IHT).

This means that it can represent an excellent way of providing life assurance cover for Employees and Directors payable to their family and dependants on death or terminal illness

What can you save?
A Relevant Life Plan could result in savings for a business when compared with a typical life policy. Premiums could be reduced by up to 49% if you’re a higher rate taxpayer and up to 40% for a basic rate taxpayer.

Who can have a Relevant Life Policy?
A Relevant Life Policy is only available to Employers (whether trading through a partnership, a limited liability partnership (“LLP”), a limited company or as a sole trader) who are applying for a new Policy on the life of an employee of theirs.

The term “Employee” includes a director and an officer of a company but does not include a partner in a partnership, a member of an LLP or the sole trader. Therefore any Contractor who contracts through their own Limited Company is eligible for a Relevant Life Plan. The cover would be taken out on you, the employee and the plan would be in your Limited Company’s name.

To find out more about the plan or get a personalised illustration please contact Power Mortgages on 02380 633415 or email services@powermortgages.co.uk: you can also find out more about Power Mortgages and request for a specialist Protection Advisor to contact you through their website www.powermortgages.co.uk

Power Mortgages Limited is an Appointed Representative of Personal Touch Financial Services Limited which is authorised and regulated by the Financial Services Authority.

Power Mortgages will not charge a fee for advising and arranging Term Assurance, Critical Illness, Mortgage Payment Protection, Income Protection Insurance, Payment Protection Insurance, and Household Insurance.

Power Mortgages also advise and arrange mortgages and specialise in placing mortgages for contractor based upon a multiple of the contract rate.

Power Mortgages normally charge a fee for mortgage advice upon completion. The amount will depend on your circumstances, but a typical fee would be around £499.

(NB: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.)

Contractors and freelancers often face a difficult time securing mortgages for a number of different reasons. This can turn what should be a relatively simple process into a minefield of confusion, especially in today’s lending climate with most Banks and Building Societies reluctant to lend and self certification mortgages being a thing of the past.

Ben Rogers a Senior Mortgage and Protection Consultant from Power Mortgages Ltd (http://www.powermortgages.co.uk), a mortgage and protection brokerage who specialise in helping Contractors and Freelancers explains how a Contractor mortgage works.

The reasons Contractors and Freelancers struggle to obtain mortgage funding broadly fall into two main categories, the first being the inability to prove all of their income, and the second surrounding the fact that there is an end date on the contract and as such the lender questions how mortgage payments would be maintained past this end date.

More often than not, as a Contractor or Freelancer you will be remunerated via your own Limited Company or via an Umbrella Company. Each route has its own issues which are as follows:

Limited Company
If you have taken this route, then chances are you will own more than 25% of the shares of the Limited Company (often 50% with a partner or even 100% outright). Most lenders criteria state if you own more than 25% of the shares of the company you are employed by then they will assess you as being self-employed. To satisfy their proof of income requirements on this basis you will need to provide in most instances 2 or 3 years of Limited Company trading accounts which leaves a lot of Contractors stuck already if their Limited Company was incorporated less than 3 years ago.

Even if you had the 2 or 3 years trading accounts the lenders would only define your income as your salary and dividend draw looking at the average figure over the 2 or 3 year period. Therefore, any expenses, pension contributions or profit you have retained within the Limited Company will be ignored potentially throttling the amount you are able to borrow. Likewise if your contract rate has increased and your figures for the most recent year are higher, they will be averaged down if previous years figures are less. You may have also taken time out or taken an employed position for a while, which will affect the figures your Limited Company shows at the year end all of which will mean your borrowing ability will be affected.

Umbrella Company
Most lenders do not really understand the role of Umbrella Companies and often see them as employment agencies of sort. This can lead to the lender classing you as a temporary worker and as such you fall out of their lending criteria. Even if this is not the case, Umbrella Companies often remunerate their clients in a number of tax beneficial ways such as trust or loan payments, holiday pay, expenses, commission, over time and bonuses. Whilst beneficial to your net pay this often hinders your potential maximum mortgage borrowing with lenders only using 100% of income which is taxable (ruling out the trusts/loan payments and expenses) or often using only 50% of what they deem is ‘non guaranteed’ income (holiday pay, commission, bonuses).

Some lenders understand that Contractors and Freelancers are not the risk that they have historically deemed them to be and have catered for them in their own unique way as part of their lending criteria.

This enables you to use your contract as your proof of income annualising your daily or hourly rate and using this figure as your earnings, negating the need to reference the Limited Company accounts or Umbrella Company payslips or tax returns. To enquire about how much you can borrow based upon your contract rate, head to http://www.powermortgages.co.uk/contact.html

By providing your contract as your proof of income this will obviously highlight the end date on the contract to the lender which leads to the second issue of proving that you have the ability to service the mortgage throughout the whole of the mortgage term. To get around this point lenders have agreed to take a common sense approach and look at your experience and skill set as a Contractor or Freelancer. A copy of your CV is normally required which can demonstrate your previous experience within the industry both on a contracting and permy basis as well as highlight your niche skills which make you desirable to potential end clients and employers. This will provide the lender with reasonable confidence that should your current contract not renew you would be able to secure a new contract or permy role on a similar income thus being able to maintain the mortgage payments.

Many non-specialist Mortgage Advisors do not have the detailed understanding of the ‘Contractor/Freelancer friendly’ lenders’ criteria. They will also not have a high level of contacts built up with lenders to get cases reviewed by the Underwriters if they do not quite meet standard criteria. By using a Contractor/Freelancer specialist like Power Mortgages (http://www.powermortgages.co.uk) you can maximise your chances of obtaining the best mortgage for your needs and circumstances and minimise the chances of facing a declined application.

To find out how much you can borrow, get illustrations based upon your own personal circumstances or obtain an agreement in principle please contact Power Mortgages on 02380 633415 or email services@powermortgages.co.uk: you can also find out more and apply for a specialist Mortgage Advisor to contact you through their website www.powermortgages.co.uk

Power Mortgages Limited is an Appointed Representative of Personal Touch Financial Services Limited which is authorised and regulated by the Financial Services Authority.

Power Mortgages normally charge a fee for mortgage advice upon completion. The amount will depend on your circumstances, but a typical fee would be around £499.

(NB: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.)

I have recently passed my Project Management Institute (PMI) Project Management Professional (PMP) – (July 2011). In this article will explain how I went about applying for the examination, how I studied, the books I used and what I believed helped me pass the PMP Certification.

Why the PMP?
I have been working as a Project Manager for years in the UK and have attained the PRINCE2 (as well as the ISEB IS Project Manager and ISEB PPSO) Project Management qualifications. However my plan is to leave the UK and I wanted to obtain a more internationally focussed Project Management qualification.
The PMP is globally recognised and a when I did a quick check on job adverts for roles in North America and Asia, it seems having the PMP certification is high in demand for Project Managers Globally.

Applying for the PMP
Not just anyone can sit the PMP exam; you need to be a reasonably experienced PM. I would suggest planning to do the PMP exam after around three years experience as a Project Manager.
To apply for the PMP, you need to have either:
A four-year degree (bachelor’s or the global equivalent) and at least three years of project management experience, with 4,500 hours leading and directing projects and 35 hours of project management education.
OR
A secondary diploma (high school or the global equivalent) with at least five years of project management experience, with 7,500 hours leading and directing projects and 35 hours of project management education.
If you do not meet the PMP requirements, you may want to look at the Certified Associate in Project Management (CAPM). CAPM is a certificate for someone earlier in their career who does not fulfil the criteria for PMP.

The PMP application process is pretty tricky. First you must create a new user account to start an on-line application (https://authentication.pmi.org/Default.aspx?r=certification.pmi.org/default.aspx&s=true). Once you have created an account you must follow the steps to fill in the on-line form. The form is very comprehensive and you will need to fill in a lot of information regarding your project management experience. My tip is to have a copy of your CV to hand when you fill in this form. One part of the form I found really difficult is to estimate the hours you have spent performing certain Project Management tasks. You cannot just fill in any old thing here to get to the examination stage, PMI audit 1 in every 10 applications to ensure they have been filled in correctly. A few years ago on a previous application my application was audited and I had to get referees who had worked with me to vouch for my experience.
This time around the major problem I had was in accurately estimating the amount of time I spent in hours for each project management task, split over a number of companies, so I devised the spreadsheet below to help me work out if my estimates made sense and added up. Luckily my estimates all made sense. The time I estimated to have spent on each project management task at each company, when totalled up, did not exceed the length of time I spent at that company; furthermore it seemed I had above the requirement for the minimum number of hours spent on these activities.
 

Studying For the PMP Exam
Once I had been approved to take the exam, I booked an exam date and started to study.
One thing to be said for the exam dates: I found this process to be simple; the PMI website takes you to the Prometric website – the company who administer the computer-based PMP exam. The good thing about the exam being administered through Prometric and being computer-based, means if you can find a test centre near you, you are likely to find a suitable date and time also (the exam is not restricted to any particular day) normally from my experience the times are 08.30am or 01.00pm, for the 4 hour exam.
For those taking the exam in the UK – I sat the exam at a Prometric centre in Leeds (King Street, near the train station) and in London (near Cannon Street Station). There seems to be a Prometric testing centre in most major cities and towns.
The reason I sat the exam twice, is because I failed the exam the first time around. I believe this was due to inadequate preparation.
For the PMP exam, I chose to self-study and not to use a training provider. There are excellent training providers offering one week courses for PMP for between £1100 – £2000. However my choice to self-study was based on the other exam and training commitments I had this year. Also on the fact that, as a contractor, one week on leave from a contract includes an opportunity cost of lack of earning for that week, as well as the cost of the training course. In the UK, unfortunately, there are not any training courses offered on weekends, like there is for PRINCE2 or MSP, perhaps the demand for PMP is not so high in the UK.
Below are the training materials I used to study for the PMP exam.
I recommend the following books for definite; these are the training materials I think were instrumental in me passing the PMP examination:
• Head First PMP: A Brain-Friendly Guide to Passing the Project Management Professional Exam – Jennifer Greene & Andrew Stellman (Around £39.95 Amazon)
• PM Fastrack Exam Simulation Software for the PMP Exam: CD ROM Version 6 – Rita Mulcahy (Around $269.00/£165.00 from http://www.rmcproject.com)
• Q & A’s for the PmBok Guide – Project Management Institute (Around £29.99 Amazon)

The following training materials are required for complete study also:
• PMP Exam Prep: Rapid Learning to Pass PMI’s PMP Exam-On Your First Try! – Rita Mulcahy (Around $56.00/£35.00 from http://www.rmcproject.com)
• A Guide to the Project Management Body of Knowledge: PMBOK Guide – Project Management Institute (Around £25.00 Amazon)

The following training materials, I purchased, but did not use for study:
• PMP Project Management Professional Exam Study Guide: Includes Audio CD – Kim Heldman (Around £33.99 Amazon)
• Hot Topics Flashcards For Passing the PMP and CAPM Exam – Rita Mulcahy (Around $22.00/£13.50 from http://www.rmcproject.com)

My main study tasks were to read the Head First Book (I highly recommend this, as it explains the principles really clearly) and use the Rita Mulcahy exam simulation software PMP exam simulation, doing about 20 questions a night. I also found it really helpful to do a full 4 hour PMP exam simulation at the start of any study and at intervals of my study and the end to see how I progressed and how my score improved.

Costs
If you want to get an idea how much it will cost to get the adequate training materials and pay for the exam.
The testing fee will cost $555.00/£340.00
If you would like to purchase all the books I listed above they will cost around £350.00
This totals around £700.00 required to obtain this qualification, not including the hard work and study required to pass this exam.

Passing Your PMP Exam
In the actual exam, remember it is a Computer-based exam held at a testing centre, where there may be many other exams of different topics, starting and ending at different times. Below are my tips to help give you the best chance of passing the PMP exam:
• Use the ear plugs provided, to help you concentrate (remember other candidates are taking shorter examinations and so will be coming and going throughout your exam).
• Eat and drink well before the exam (it is a four hour exam and no food or drink is allowed)
• Use the tutorial, to settle into the environment and get used to the software and calm down
• Write the formulas you know on the scratch paper as soon as you can (after tutorial)
• Use the scratch paper
• Look out for words like NOT, LEAST, MOST, LEAST LIKELY, BEST, in questions, as these can trick you, it is easy to miss the question is asking for the LEAST LIKELY, when you see the MOST LIKELY answer in the multiple choice.

Good Luck!!

Steve

http://www.contractorprojectmanager.com

What is the outlook for interest rates?

UK interest rates were held at a record low for the 25th month in a row last week, which has posed questions to contractors who currently have a mortgage or are thinking of taking one. How long can this last? Should I assume rates will go up and take a 5 year fixed rate, or gamble that they will stay low and take the risk on a variable deal? Sound familiar?

There are some clues if you look at comments made by Mervyn King, Governor of the Bank of England, when he explained his outlook for the UK economy. The answer to the questions posed above is linked to one key word – inflation.

Mr King said the consumer prices index (CPI) measure of inflation would climb closer to 5% in 2011. However, he said, the Bank’s Monetary Policy Committee (MPC) believed inflation will be around target at 2% in two or three years “under the assumption that the bank rate increases in line with market expectations”.

“Interest rate futures are pricing in a first 0.25 percentage point rise by Q4 this year, and another every three months for the next two years or so”, said Philip Rush, economist at Nomura. That would signal a 0.25% increase by the end of 2011, and a further 0.75% by the end of next year.

But what about prospects for the base rate beyond 2012? Most economists have differing views at this point, so I will offer an opinion at this point and nothing more. There is a strong argument that says rates do not necessarily have to go back to pre-recession levels for a booming economy, an argument I agree with. A base rate of circa 3% could be enough to sustain an economy that has put the worst post war economic crisis behind it. Factors affecting inflation in the short term, such as oil and commodity prices as well as austerity measures applied by the current government, should fall away in the short term, allowing for a more realistic appraisal of inflation. That figure, in my opinion, will be between 2 – 3%; easing upward pressure on the base rate.

Being a realist about party politics, I predict the current government will generate a “mini-boom” in 2015 prior to the next general election via fiscal policy; therefore assuring a Conservative led government for another 5 years. The impact on interest rates after that is a topic for another day.

In short, contractors should look at their own affordability requirements when considering their new mortgage. Predicting what to do based upon base rate movement is educated guesswork at best, so factors like potential gaps in contract and available savings should play more of a factor in the decision to fix or not to fix.

For more information on Contractor Mortgages CLICK HERE

Taj Kang
Associate Director
Contractor Mortgages Made Easy

Did you know? – Self Certified Mortgages are no more

Back in 2009 the Financial Services Authority (FSA) put an end to self-certification mortgages in an attempt to ensure that all borrowers prove their ability to repay in advance.

Self-certification mortgages were originally aimed at contractors, the self-employed and freelance/contract workers who had trouble proving their income and in many cases became the mortgage of choice for contractors on irregular income who struggled to secure mortgage borrowing with their bank..

Many contractors reading this may have had a self-cert mortgage in the past or may have been relying on one for a future mortgage.

At Contractor Mortgages Made Easy they are well aware that many contractors are perfectly capable of running a mortgage but may find it difficult to prove their income due to the tax efficient way that operate.

Contractor Mortgages Made Easy have worked effortlessly on behalf of contractors to educate senior underwriters at high street lenders as to why in many cases contractors carry a significantly reduced risk to lending.

As a specialist mortgage broker for Contractors they are able to help contractors secure mortgage borrowing with high street lenders taking the whole of your earnings into consideration.

To find out how much you could borrow based on your contract rate – At CLICK HERE

Taj Kang, Associate Director at Contractor Mortgages Made Easy commented:

“The fact that so many self-cert mortgages were granted to employed workers who could prove their income, and the high level of arrears associated with these types of loans shows that self-certification mortgages were being abused by both individuals and brokers. Contractor Mortgages Made Easy would not advise a professional Contractor or Freelancer to go down the self-certification route; if you approach a specialist contractor mortgage broker then they should be able to secure you a competitive mortgage that is based upon appropriate evidence of income”

It is the opinion of Contractor Mortgages Made Easy that “The FSA are correct to tighten up lending criteria, as any contractor or freelancer that can adequately afford a mortgage should have no need to go down the more expensive self-cert route to secure borrowing”

Another thing to consider for Contractors

Contractor Mortgages Made Easy

As you may or may not be aware on 6th and 9th December 2010, HMRC released Ministerial Statements advising that legislation will be introduced to tackle arrangements involving trusts or other vehicles used to reward employees and that of disguised income.

They also inserted an “anti-forestalling‟ provision to apply from the 9th December 2010 meaning that any payments (loans) or assets provided between 9th December 2010 and 6th April 2011 would be caught within the new legislation as though it happened on or after 6th April 2011.

This means that contractors using Employee related trusts (EBTs) and similar schemes will from the 9th December 2010 be unable to reduce their tax liability using these models and will be forced to look for an alternative solution or switch back to PAYE Umbrella.

Anti-Avoidance: Employment Income and Pensions Contributions
The Government will be taking action to prevent efforts to avoid Tax and National Insurance Contributions (NIC) on earnings provided through the use of trusts and other vehicles.

Employers and employees are entering into arrangements using trusts and other vehicles that seek to avoid, defer or reduce liabilities to Income Tax and NICs on earnings or that seeks to avoid restrictions on pension’s tax relief. Arrangements in some cases seek to rely on the use of complex intermediary structures, some of which may be offshore. The Government is considering options for tackling these arrangements, including those which seek to avoid the restrictions on Tax Relief for pension schemes.

The Draft Legislation
“The legislation inserts a new Part 7A into ITEPA 2003. The legislation ensures that where a third party makes provision for what is in substance a reward or recognition, or a loan, in connection with the employee‟s current, former, or future employment, an income tax charge arises.”

Now the good news……
There are still some products that remain fully compliant with Government rulings. That do not operate Employee related schemes. That uses statutory reliefs, involves no “tax avoidance‟, can be fully disclosed to HMRC, have never been challenged by HMRC in court, and loans are not taxable as “disguised income”.

APS Group is the example of such a product that I have been personally using. They use a product that has been around for nearly 20 years and is fully transparent to HMRC.

A large part of the fee I pay each month goes directly to Legal Council each month to make sure that we always comply with new laws or legislation.

The APS product is an “Intellectual interpretation of the existing statutory provisions and Fiduciary law”. APS Limited is the first company I have seen using this better structure and I have started to use them for myself. If you are interested in doing so too click http://www.contractbusinessanalyst.com/referral or call 0844 5675657 and quote the reference “Contract Business Analyst.com”

To operate as a contractor you will have to have a private limited company, or use an umbrella company or other such scheme to get paid. In this article I aim to outline how to do each and the pros and cons of each choice.

Private Limited Company

The vast majority of Contract Project Managers work through their own Private Limited Company. The term ‘limited’ derives from the fact that the company’s finances are distinct from the personal finances of their owners (unlike sole traders).

PLCs (public limited companies) differ from Private Limited Companies in that they are allowed to offer shares to the public to raise funds (with shares issued to a minimum value of £50,000).

Private Limited Companies cannot offer shares to the public, but may have any number of shareholders. Each Private Limited Company must have at least one director to make management decisions and a company secretary.

Setting up a company is often offered as part of an accountancy service, or by companies who will do all of the application and documentation for you for a small fee. This can be done by you direct with Companies House, but can take longer and for a small fee it is often more cost effective to use the intermediary companies (or your accountant). The following documents will be completed as part of your company:

1) Memorandum of Association – Includes Company Name, Location and Type of Business

2) Articles of Association – Outlines Directors’ powers, shareholder rights, etc.

3) Form 10 – Provides Directors’ and Company Secretary’s Names & Addresses, together with the Registered Company Address.

4) Form 12 – States that the Company complies with the terms of the Companies Act

Steps taken to set up my own private limited company:

Choose a company name and instruct my accountant to set up the company in that name
Complete the required forms to set up the company
Set up a business bank account (as money paid to me from my contract is not mine – it belongs to the business!)
Employ an accountant to look after the business accounts
Pay my accountant for my payroll processing on a quarterly basis (around £100[1])
Pay my accountant for being my company secretary and registered office, mainly so they receive my business post – this is money well spent as I move house a lot! On a yearly basis (around £100)
Keep a copy of what I earn for VAT etc, and fill in my own VAT form every quarter (my accountant helped me with the first one and can do them all for me if required, for around £200 per quarter)
Ensure my accountant does a yearly statement on the company accounts and helps me complete a yearly tax return (around £1000)
Ensure contracts are written between the agency and my company name and as company director I am required to sign these.

Really that is it, it looks like a lot above, but there is very little admin once you are up and running. I keep a spreadsheet of when I am working and how much I am paid and the VAT amount etc, and it takes me 5 minutes a week to update that, then when my VAT form comes I fill it in, my accountant does the rest.

I can honestly say it feels no different to being an employee; you have to remember you are an employee of your own company. The money that goes into your business account is not yours, what belongs to you is the salary you agreed to take from the account – and you have to pay tax on that.

The advantage to using a Private Limited Company is; as long as you are claiming taxable expenses, you should be taking home about 65% of your gross pay. This is not bad, but the disadvantage is there is a bit of administration as above to keep on top of your back office.

Umbrella Company

This is where you, ‘ the contractor’, essentially becomes an employee of the umbrella company, a third party company who is between the contractor and the agency.

In the United Kingdom, an umbrella company acts as an employer to independent contractors who work under temporary contract. Recruitment agencies will only issue contracts to a limited company, however many contractors may work under one umbrella company, which saves them from setting up their own private limited company.

You submit time-sheets to the umbrella company who will invoice the end client (or agency) for the work done by you. You will then be paid as a PAYE employee less the umbrella fee.

An umbrella company is a good choice if you earn less than £25,000 per year, or are on a short contract and don’t intend to stay contracting for long, or prefer not to set up your own private limited company. Working through an umbrella company is simpler than working through your own limited company but it means you will take home less money from your contract.

How working through an Umbrella Company works:

The umbrella company will sign a contract with your recruitment agency

You will sign an employment contract with the umbrella company
You regularly submit both timesheet and expenses information to the umbrella company
The umbrella company will invoice your agent/client for the work you have done
The umbrella will receive funds for you from the agency
You receive your money less tax, NI contributions and the Umbrella services fee and your umbrella company will send you a payslip just as with permanent employment

The advantage to using an Umbrella company to get paid is the lack of hassle – Payroll, tax etc, is all done for you by the Umbrella Company. However the disadvantage is on average you will only take home around 55% of your gross pay.

Other Alternatives

Employee Benefit Trust

There are a number of contractors talking about being paid “offshore”

This usually means they are using an Employee Benefit Trust to receive their pay. This means an umbrella company that holds an account offshore. The contractor pays into this account and takes an interest free loan out every month from this account in the form of wages.

This method can gain more money to the contractor and it means paying less tax. But recently these schemes have been deemed as “tax avoidance” on 6th and 9th December 2010, HMRC released Ministerial Statements advising that legislation will be introduced to tackle arrangements involving trusts or other vehicles used to reward employees and that of disguised income. They also inserted an „anti-forestalling‟ provision to apply from the 9th December 2010 meaning that any payments (loans) or assets provided between 9th December 2010 and 6th April 2011 would be caught within the new legislation as though it happened on or after 6th April 2011.

This means that contractors using Employee related trusts (EBT‟s) and similar schemes will from the 9th December 2010 be unable to reduce their tax liability using these models and will be forced to look for an alternative solution or switch back to PAYE Umbrella.

Remuneration Trust

Another alternative is a remuneration trust. This is a structure which has been used by high net worth individuals and corporate bodies for over 20 years in tax planning. The remuneration trust is a legally recognised entity provided for in both statute and common law.

You become an employee of a consultancy who contracts you out to your agency or client. The employment relationship is covered by an overarching contract of employment. The consultancy is registered as a PAYE employer and pays you a gross salary of £1,008 per calendar month, which will be subject to full income tax and National Insurance.

Once the consultancy has deducted your salary, they will elect to contribute the remaining profits from your assignments to the remuneration trust. The trust will then pay you your agreed % return of this contribution as a deep discounted commercial loan. As with all forms of commercial credit, this payment is not treated as income and therefore not subject to any form of taxation or National Insurance.

You will receive a signed loan agreement from the trust to evidence the existence of the loan. The loan will be rolled over every 10 years such that it exists in perpetuity and after death will be considered written off, as under English law debt cannot be inherited. The debt can actually also be used to offset against any inheritance tax due by your estate. Payments from the trust will be paid the same day as the trust receives the funds.

This does not fall into the statutory definition of tax avoidance as it is by virtue of your commercial

relationship with the trust that you are receiving the finance.

This method:

Involves no ‘tax avoidance’
Full disclosure to HMRC
Has never been challenged by HMRC in court.
Loans are not taxable as ‘disguised income’
Contributions are deductible in computing the profits of the tax payer company
Full employee status
Professional Indemnity Insurance on the whole structure of up to £2 million.
Has been used as sound tax planning for almost 20 years.
High percentage returns

APS Limited is the first company I have seen using this better structure and I have started to use them for myself. If you are interested in doing so too click http://www.contractorprojectmanager.com/referral or call 0844 5675657 and quote the reference “Contractor Project Manager.com”

Pay comparison of options

Below is a table comparing the typical pay with each option:

Table Comparing Contractor Payment Options UK

(Please note. The below figures are for illustration purposes only. The PAYE figures have been calculated using a tax code of 747L with applied £1,200 of taxable expenses)

Conclusion

There are a number of ways to be paid now and it is up to you which one you choose based on how much hassle versus risk versus money you prefer.

This article describes how to write a good CV, regarding the philosophy of how to approach creating the CV and tips on what to include and how to communicate it.

A CV is a sales document; it conveys succinctly the information of what you are looking for and why. Why you are qualified for such work and a story as to how you got to this point, covering your previous work experience, education, qualifications and interests.
I believe a CV should be a succinct story backing up a tag line about yourself. Often in interviews the main asked of the candidate is:

“Tell me about yourself”

This answer and the CV to back it up should be made as succinct, clear and relevant as possible to the position sought.

Obviously life is not as clear and simple as this and many of us have a complicated and confusing history in regards to work experience, education and life story, but effort should be made to make this as clear as possible in interview and on the CV. To present only the relevant facts to sell you most effectively for the post in which you are applying.

Profile
The profile should be a short sentence stating clearly:
• What work you are looking for
• What you have to offer (why you are qualified)
I believe in starting the CV with a profile. This explains to the employer or recruiter what you are looking for and summarises all of the attributes that can be found in detail on the rest of your CV.

The recruiter will know what they are looking for and if your profile states this in summary then you are making their job a lot easier and they are more likely to put you in the “yes” pile, as they quickly check a large volume of CVs.

Remember the recruiter is human too, think how frustrating it is when you look at a website that is not clear and it is hard to find the information you need quickly. Now think of the recruiter who has to look through a large volume of CVs for any advertised positions, if they have to look at a large number and it takes too long for them to find the information they need from your CV they may not take the time to do so.

Work Experience
Work experience should come directly after the profile in reverse chronological order.

The first thing a recruiter or prospective employer will look at is the last job you have had and if you had the relevant experience or achieved something relevant to the job you are applying for in previous roles.

Do them and yourself a favour and put this experience where they can find it easily. I.e. your most recent job at the top and your previous roles below this.

There will always be gaps and times when you worked for a short time, temping, travelling etc. It is your call as to how to include these but remember your story needs to be made as clear as possible, so if you worked somewhere for a short time then make the story relevant as to why or consider omitting some jobs altogether. Maybe include one line with the dates and mention what happened, e.g. temping role, or went travelling between these dates etc. This answers the question quicker than leaving gaps and having to explain them in interview.

Education
Education should be also in reverse chronological order.

Other Qualifications
If you have attended any training courses or have industrial qualifications they should be entered here. Remember this is a sales document – list everything you have done here – sell yourself!

Interests
Qualify your hobbies and interests. Do not mention generic things such as ‘I like to go running’ without qualifying it as to what has been achieved. For example, it would be better to say: “I am part of the Harriers running club” – or “I recently completed the Great North Run”

Good luck!

When starting out in Project Management there are two immediate priorities on one’s radar.

1. To gain as much on the job experience as possible
2. To obtain professional qualifications which will aid in development

Professional qualifications go hand in hand with the experience you will gain whilst in a project role. Most likely, these qualifications will act as a prerequisite into the job itself and will offer a structured, consistent framework, from which you can manage projects of any size.

For individuals wishing to build their project knowledge from scratch, the APM Introductory Certificate Qualification offers solid grounding in terms of understanding the project lifecycle, roles, responsibilities and logical checkpoints. The information presented is simplistic and easy to pick up, even if you have had no prior knowledge or experience within a project environment.

This article endeavours to provide a brief insight into the APM Introductory Certificate Qualification along with a series of useful tips to aid in your success.

Exam Preparation

Let’s get down to the finer details shall we? First port of call is to do your research on the qualification and the impending examination.

The assessment is split down into the eight key principles of project management;
• Planning and scheduling
• Communications
• Quality management
• Teamwork
• Resource management
• Risk management
• Handover
• Review
These principles are derived from the APM Body of Knowledge 5th edition which can be purchased either directly from the APM bookstore (http://www.apm-training.com/apm-book-store.asp) or if you are looking for a cheaper alternative (http://www.amazon.co.uk/) is a great source for second hand books.

Revising these topics is a fairly painless process as the content is well written, detailed and provides plenty of examples for you to relate back to in the exam.

One key learning I took from revising for this examination was to pay particular attention to the stakeholder structure. Becoming familiar with how APM structures its ‘project people’ will allow you to logically think through various other questions in the exam for example; who owns what documentation and which parties need to be involved in key decisions.

The exam itself is an hour long and consists of 60 multiple choice questions. A minute per question at first sounds taxing, but bear in mind some questions will be easier to answer than others and will take seconds to instinctively answer.

For those of you who have had no previous exposure to projects I would recommend studying for around 20 -30 hours before the examination just to get yourself comfortable with how projects are structured, the links between stakeholders and what outcomes are expected.

For those individuals who have previously worked in a project environment, my recommendation would be to revise anywhere between 10 – 20 hours as most of the material will already be familiar ground. Most of the learning will come from memorising the specific APM ‘lingo’ as this may differ to what is used in your working environment.

Once the core revision has been completed and you are comfortable that all the knowledge is in place to tackle the exam, I would recommend testing yourself on the various sample papers/exams that are available online at (http://www.apm-training.com/apm-downloads.asp). This will allow you to hone your skills at answering the multiple choice questions at pace and becoming familiar with the amount of time you have to complete the exam, along with the style and structure of the questioning.

Wrap up

Going for the APM Introductory Certificate is a widely recommended stepping stone on the road to becoming a successful and experienced Project Manager. From here you can begin to explore many avenues of Project Management Qualifications including the APMP and Prince 2 paths.

Good Luck!

This article explains how to effectively get the right temporary job in the most efficient way with the least effort and best chance of success…

Temporary work is one of the best ways to gain experience or make money in a set amount of time. It can be a foot in the door to an industry you want to work in. Or a way to earn, even if you are looking for a more permanent job, it can help to fill the gap and take pressure off your finances and your nerves while you job hunt. It also helps out the company that requires temporary work cover!

There are a number of job boards, agencies and temporary work websites available and the options can seem overwhelming. There seems to be so many jobs, but no way of knowing if you are right for them. So most people would sit at home and apply for many different jobs, changing their CV and covering letter many times to suit the variety of jobs they are applying for, using considerable effort to find temporary work.

I would suggest there is a better way to find temporary work, a way that involves no changes to your CV, that guarantees real-time, real-world feedback, instead of sending application after application into the black hole of online applications to receive no feedback or a computer generated rejection email a little too late. This way can increase your chance of getting a job, as there is more than one person with a vested interest in finding you work is selling you to prospective employers.

This method however, requires a courage and willingness to pick up the phone and research, approach and sell yourself to the appropriate person.

This method is simple:

1. Create a good, clear and relevant CV, including in the profile the type of work you are appropriate for and what you would consider and why (see http://www.cvphoenix.com for a CV service that will help you affordably create this CV!)
2. Research employment agencies by location or job type or industry.
3. Call the agency (main number is fine) and explain you are looking for work and ask to speak to, or the name of an agent / recruitment consultant who deals with the type of work you are looking for.
4. Speak to the agent and ask for their email address.
5. Send your CV to the agent via email.
6. Follow-up sending your CV with a call to the agent, to ensure they received the email okay and whether they are able to open your CV in the format it is in.
7. Ask them if they could take a look at your CV, while you are on the phone and give you feedback on the CV whether you are suitable for any temporary work they have available at present.
8. Now that the agent knows your name, CV and how you present yourself on the telephone, he/she is more likely to think of you when a suitable placement there and then, when one is available later, or tell you what you may need to change in terms of your CV or what you are suitable for.

The fact that they have spoken to you puts you in a better position than the hundreds of applicants whose emails and CVs are sitting in their inbox, or received via faceless on-line applications.

I would suggest making a note of what recruiter you spoke to and when and call them back as often as required to see if they have recently got any suitable positions.

SELL YOURSELF!

It may be beneficial to meet the recruiter, if it is possible try and pop into the office and meet the recruiter, if they meet you and like what they see, they will find it easier to sell you too!

If you have one or two recruiters looking to place you, then you have allies looking for work for you: as well as your own efforts! These agents have better contacts than available to you and are motivated by the commission they get from the client in placing you and the job satisfaction in placing you, giving you a job and giving the client what they need.

It is a win-win situation!

Good luck!

Steve