Financial Planning

Financial Planning with Effective Accounting

Finding a mortgage, pension or protection product tailored to your Contractor status can be daunting so we have teamed up with ContractorFinancials, the leading Contractor specialist Independent Financial Adviser.

Their award winning advisers can ensure you make the most of your money and help you to avoid the pitfalls that freelancing can often present. This way you can enjoy the freedom of contracting whilst still retaining many of the benefits and the safety net that you enjoyed as a ‘permie’.

To view more information of the different services, please click the title below, click again to hide the information.

Contractor Mortgages

Don’t waste time, effort and money approaching high street lenders for a mortgage only to be declined because of your Contractor status. The mortgage service from Effective Accounting and ContractorFinancials can help you secure the finance you need without any of the hassle that Freelancers normally face:

  • Special income underwriting with the mortgage lenders that enables you to borrow based on an annualised multiple of your contract rate alone.
  • You avoid the hassle of explaining your employment status and can secure a far greater loan than pay slips alone would warrant.
  • Mortgages can be agreed within minutes of speaking to an adviser
  • Unique relationships with the lenders help your competitive mortgage to be processed quickly and without fear of rejection.
  • Even if you have only been contracting for a few days and are applying with as little as a 10% deposit.

Flexible Pensions

Start saving for retirement and benefit from tax relief on contributions with a flexible pension to suit your needs. You can fund a pension personally or via your ltd company.

  • A pension funded via your ltd company can reduce a hefty corporation tax bill to nothing.
  • Pensions offer a tax efficient method of transferring company funds into personal hands.
  • The advisers at ContractorFinancials will help you choose a flexible pension to suit your working status.
  • You can take payment holidays when you are out of contract and overpay when you want to.
  • Your Adviser will help you choose your funds based on your attitude to risk and investment goals so you pension is tailored to your needs.
  • You benefit from an annual review of your pension investment to help you reach your retirement goals.

Income Protection

  • Maintain your income in the event that you are unable to work through illness or injury. ContractorFinancials offer income protection plans that are tailored to your needs as a Freelancer.
  • Income protection cover will pay a tax free monthly income, either immediately on the very first day of illness or injury or after a pre-arranged period (e.g. 1 month).
  • Unlike many other policies which will pay for a matter of months, benefits will continue to be paid until you recover or reach your chosen retirement age.

Tax efficient Life Cover

  • ContractorFinancials specialise in finding the right insurance to suit your individual needs as a Contractor and aim to provide this essential cover for you at an affordable price.
  • You can pay for life insurance through your ltd company and save tax on your premiums by opting for the specialist ‘Relevant Life Cover’ offered by ContractorFinancials. This has replaced out of date ‘Keyman’ policies to offer a comprehensive, tax efficient life cover for Directors.
  • Life cover will normally pay out a lump sum but if you are worried about how your loved ones will cope with the challenge of investing these funds and budgeting then a family income benefit will pay them a manageable monthly income instead.

Critical Illness Cover

  • Critical Illness cover pays out a lump sum on diagnosis of a serious condition rather than on death so you can make use of the money whilst you recuperate.
  • It can help you fund changes to your car or home and help you keep your independence. Start to rebuild your life whilst knowing that the benefit payment is non-refundable, even if you return to full health.
  • Like life cover, you can arrange your critical illness policy to cover you for a fixed term such as to retirement or until the end of a mortgage.
  • Critical illness is best used in conjunction with Income Protection (Permanent Health Insurance) which will give you a monthly income if you are injured or become too ill to work and will continue to pay until you return to health.

Private Medical Insurance

  • With private medical insurance you benefit from quality treatment when and where you need it so you can get back to work as quickly as possible.
  • ContractorFinancials have negotiated special terms for Effective Accounting clients and their families with WPA, a recognised health insurer that has won numerous awards in their field.
  • With this experienced provider you can gain immediate cover as soon as you join and benefit from at least 10% discount on premiums for the life of the policy via our dedicated contact at the insurer.

NISAs and Investments

  • You can invest up to £15,000 each year into a NISA account and up to £4000 per year in a Junior NISA.
  • NISAs offer flexible investments with options that are suitable for short, medium and long term needs. With most you can draw out your savings at any time.
  • You can switch your investment from stocks and shares which can offer good returns as long as you can accept that your funds may fluctuate in value from one year to the next, to cash if you have a low risk tolerance or need to have access to the savings in the short term without any of the limitations associated with the old breed of ISA’s.

For further details call 0208 090 0702 or email effectiveaccounting@contractorfinancials.com
Financial advice is given by Contractor Financials, which is a trading name of Contractor Financials Ltd and is regulated and authorised by the Financial Conduct Authority.