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PSC Financials

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There are a number of specialist financial products and insurances aimed at contractors on the market. Some are a legal requirement while others are purely optional, so it’s important to know your obligations.

Insurances

Contractors running their own PSC are required by law to take out Employer's Liability Insurance (EL). The policy covers a company against loss, damage, injury or disease caused to an employee when they are at work. As well as EL protection, it is strongly  recommend that contractors consider Public Liability Insurance, Professional Indemnity Insurance and Director's & Officer's Insurance.  All of our business insurance products can be found in the financial services section.

Mortgages

If you're self employed and you want a mortgage, the lender will usually want to see proof of your income. You would normally need to show three years audited accounts though some lenders will accept only two years.

If you haven't been in business long enough the lender should accept a letter of confirmation from an accountant. But, if you can't show the three years accounts, you may have to pay a larger deposit or a higher interest rate on any loan taken out.

freelancesupermarket.com has negotiated discounted rates with a number of contractor-specialist IFAs. All of our preferred IFAs are fully qualified with many years experience working with freelance contractors, so will be familiar with your circumstances, making it easier to arrange a mortgage that suits you. Visit our financial services page to find out more.

Pensions

Pensions offer one of the best forms of investment to a contractor running a limited company (or PSC) due to their tax-efficient nature. Payments to a pension fund are made before national insurance contributions and income tax is applied.

You can also make payments directly from your business bank account. What pension is right for you is likely to be complex, and you may find that you need specialist advice to find a pension scheme that suits you being a contractor, so for more information visit our Contractor Pensions section.

Further reading

Freelancers, shared ownership, and the first step on the property ladder

freelancers, shared ownership, and the first step on the property ladder

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