Tampa Short Sale Show Financial Institution Homeowners Intent to Pay

A countless number of families were living in big, beautiful homes that they could not actually afford because they were targeted by predatory lenders only a few years ago and then the subprime mortgage crisis hit the country, which many say is the root of the financial crisis facing America today. Foreclosures in Tampa, Florida are at a record high because homeowners could not afford to pay their ever increasing mortgage payments – if they signed up for an adjustable rate mortgage (ARM). Even people in houses with fixed rate mortgages were finding it difficult to make their monthly payments when gas prices were above $3 a gallon and jobs were being shipped overseas or downsizing of many businesses.
Other homeowners, not wanting to ‘give’ their home back to the bank or lending institution opted to sell their homes on a Tampa short sale. This means the homeowners sold their house for less or ‘short’ of what they owed the mortgage company. The homeowner still owes the balance left or difference between the short sale and the balance due; however, some consider this to be a better solution then a foreclosure in terms of what is placed on their credit report.
Although it is difficult, extremely difficult, to have extended credit after a foreclosure, it may be a little easier to receive a break from a lending institution after a short sale. A short sale shows the bank that a homeowner is trying, that they are attempting to repay their debit.
The latest numbers, collected in September of 2009, showed of the top 25 Core-Based Statistical Areas, Tampa-St. Petersburg-Clearwater Florida had 375 houses selling under a short sale agreement out of the 3,980 total houses on the market in those areas. And 757 of that total number of houses for sale were sold as REO – real estate owned. These numbers are significant for a couple of reasons; one because data like this has only been collected for a short period of time, there was no real need for it before, and two, it shows that more homeowners are settling for less money on their homes simply to ‘get out from under’ a mortgage’s sometimes ‘debilitating’ debit.

Tampa Short Sale Show Financial Institution Homeowners Intent to Pay

A countless number of families were living in big, beautiful homes that they could not actually afford because they were targeted by predatory lenders only a few years ago and then the subprime mortgage crisis hit the country, which many say is the root of the financial crisis facing America today. Foreclosures in Tampa, Florida are at a record high because homeowners could not afford to pay their ever increasing mortgage payments – if they signed up for an adjustable rate mortgage (ARM). Even people in houses with fixed rate mortgages were finding it difficult to make their monthly payments when gas prices were above $3 a gallon and jobs were being shipped overseas or downsizing of many businesses.
Other homeowners, not wanting to ‘give’ their home back to the bank or lending institution opted to sell their homes on a Tampa short sale. This means the homeowners sold their house for less or ‘short’ of what they owed the mortgage company. The homeowner still owes the balance left or difference between the short sale and the balance due; however, some consider this to be a better solution then a foreclosure in terms of what is placed on their credit report.
Although it is difficult, extremely difficult, to have extended credit after a foreclosure, it may be a little easier to receive a break from a lending institution after a short sale. A short sale shows the bank that a homeowner is trying, that they are attempting to repay their debit.
The latest numbers, collected in September of 2009, showed of the top 25 Core-Based Statistical Areas, Tampa-St. Petersburg-Clearwater Florida had 375 houses selling under a short sale agreement out of the 3,980 total houses on the market in those areas. And 757 of that total number of houses for sale were sold as REO – real estate owned. These numbers are significant for a couple of reasons; one because data like this has only been collected for a short period of time, there was no real need for it before, and two, it shows that more homeowners are settling for less money on their homes simply to ‘get out from under’ a mortgage’s sometimes ‘debilitating’ debit.

Know Your Budget and Be a Great Manager of Your own budget

Whether you are dealing with your personal or professional life it is very important to manage your budget effectively. Money is the life line and if you do not manage it properly then you could fall on your face. Also in order to avoid any sort of financial disorder it is very important for us to know the budget management. In this article I will present few tips which will help you to know your budget and manage it effectively.

Why do we need budget management?

A budget allows you to build a plan for your money. In fact, it is a summary of how much of your earning is flowing into your costs in addition to where your funds are used. Budget management also helps you to live as well as possible with your earnings. So, in order to value your money it is very important to manage your budget.

Tips to Manage Your Budget Effectively

Monthly Budget: A great way to manage your money is to create a monthly budget and follow it. It is essential that you set a budget for yourself to understand exactly how much you can spend according to your needs. This process will help you to know your expenditure and also assist you to handle overspending.

Record your expenses:In spite of having a monthly budget it is essential to record all your expenses. It is a human tendency to spend in luxury rather than necessity. So make sure to record all the money transactions to identify your overspending areas. Though I am not asking you to stop spending for your luxury but by keeping a record you can at least know the areas where you spend unnecessarily.

Reduce debt:It usually is a good idea to relieve your debt as rapidly as you can. Substantial debt impacts a lot in your spending budget. Avoid using your credit card as much as possible. Use it for emergency purpose only. For the high rates of interest on the credit cards you might get stuck into a debt cycle. Make all the essential monthly payments at the earliest and if possible then pay more than minimum- your debt will certainly decrease faster in this way.

Saving:This is one of most important aspect which we all should consider to manage our budget. Once your monthly budget is ready then you should think of savings and contribute a part of your amount in it.Based on your monthly income, open a savings account and add an appropriate percentage of your income towards your savings account. These types of accounts give you the monetary strength to face any kind of emergency. Start small. Basic investment methods can bring a massive result.

Investment: Investment is another great option to manage your budget. Investing is often a wise strategy to get just a little extra cash. You can possibly spend money in mutual fund of a reputed organization. There is no chance of losing the amount once you invest in a reputed organization.

The above mentioned points will surely help you to value your hard earned dollars as well as to handle your budget adequately. Though there are few more which could have been added but I am definitely sure by following all the tips you will become an effective budget manager of your own.

How To Avoid Chapter 7 The Simple Method

Nowadays everyone is in search of a way to get back on their feet. People from everywhere in the nation are nonetheless combating huge quantities of debt. While some succumb to chapter 13, others are trying to find out methods to avoid chapter 13 altogether. Take a look over these prime ideas with the intention to get back in your feet very quickly!
You do not need so as to add onto your debt with extra credit cards and even charges. Stop utilizing lines of credit completely so that you simply minimize your spending. This is basically what acquired you in hassle in the first place so that you do need to chop up the cards and focus on the bills. The extra that you simply spend, the extra further into debt you may be!
You can too speak along with your collectors in an effort to see what they’ll do for you. Many creditors are keen to work with these want simply because they too are in need of money. Give them a call and see when you can work out a greater fee plan with lower payments or a decrease curiosity rate. You would be stunned at how much enable you truly received!
One other nice option to avoid bankruptcy is through debt consolidation. There are great companies with teams of professionals that can point you in the best direction. If you are on the lookout for solutions to your questions, merely get on-line to get in contact with one in every of these services. They’ll be capable of get you on the correct plan that is straightforward to comply with and will pay off for you in the long run!
You will want to probably work extra for those who expect to repay your debt sooner. Many people today are taking out second jobs in an effort to cover additional payments that they want to take care of. This could be plenty of work however in the long term it’s going to all pay off. Take additional shifts and hours when you may in an effort to obtain an enormous paycheck each week!
Manage your debt and just remember to know what must be taken care of first. You do not want your debt to be written off to collections, in any other case it will not be as straightforward to pay it off. Take the time to get out the overdue bills and discover a good start line from there. You will be able to get a plan that works going simply!
Lastly, make sure that you take the time to set a funds for yourself. Now that you’re making an attempt to pay off as a lot debt as attainable, you should not be overspending anymore. Take the time to determine all of your monthly bills and just be sure you stick with what you’ll be able to afford! It will all provide help to to even save some more money as nicely!
There isn’t any higher time to find out how to avoid chapter than proper now. If you want to maintain a decent credit score rating, it’s essential to make some changes. Look at your debt right now and find out how one can simply get began!
These days everyone is on the lookout for a way to get again on their feet. Folks from all around the nation are still fighting large amounts of debt. While some succumb to bankruptcy, others are trying to find out how to avoind chapter altogether. Have a look over these top ideas as a way to get again in your feet in no time!
You do not need to add onto your debt with more bank cards or even charges. Cease using lines of credit completely so that you decrease your spending. That is essentially what obtained you in trouble in the first place so that you do need to cut up the playing cards and concentrate on the bills. The extra that you just spend, the more further into debt you can be!
You too can talk together with your creditors to be able to see what they will do for you. Many collectors are prepared to work with those need just because they too are in want of money. Give them a call and see for those who can work out a better fee plan with lower payments or a decrease interest rate. You would be shocked at how much make it easier to actually obtained!
Another nice strategy to avoid chapter is through debt consolidation. There are nice providers with teams of professionals that may point you in the suitable direction. In case you are searching for solutions to your questions, simply get on-line to get in contact with one in every of these services. They may be capable to get you on the fitting plan that’s simple to comply with and can pay off for you in the long run!
You will want to probably work more if you anticipate to pay off your debt sooner. Many people right now are taking out second jobs with a purpose to cover extra payments that they wish to take care of. This is perhaps lots of work however in the long run it’s going to all pay off. Take additional shifts and hours when you’ll be able to so that you can receive a large paycheck every week!
Arrange your debt and just remember to know what needs to be taken care of first. You do not want your debt to be written off to collections, otherwise it won’t be as simple to find the debt relief. Take the time to get out the late bills and find a good start line from there. You will be able to get a plan that works going simply!
Finally, just remember to take the time to set a finances for yourself. Now that you’re trying to repay as a lot debt as attainable, you should not be overspending anymore. Take the time to determine all your monthly bills and just remember to follow what you possibly can afford! It will all show you how to to even avoid wasting extra cash as effectively!
There is no such thing as a better time to learn how to keep away from chapter 13 than now. If you want to keep a decent credit score score, you should make some changes. Have a look at your finances right now and find out how one can easily get began!

How to Lower the Cost of College

College certainly isn’t cheap, but there are many ways students can save themselves some serious cash while earning their degrees. Although graduating completely debt free from college is virtually impossible in this day and age, it is possible to significantly prevent student loan debt from over accumulating.

Here are five ways students can save money without compromising the quality of their education while in college:

Explore Financial Aid & Scholarships

Most colleges and universities offer a plethora of financial aid and scholarships. Students should apply to any relevant scholarships and make appointments with financial aid representatives at their campus to look at their options. Free money is always a good thing for students, so financial aid and scholarship opportunities should always be taken full advantage of.

Consider Living at Home

One of the most appealing aspects to college for many students is moving away from home, but this can unfortunately lead to a mountain of debt quickly amassing. Living with parents while attending college can potentially save thousands of dollars due to significantly reduced spends on rent and food. Studying locally also usually means students won’t have to pay out of state tuition, which alone can save tens of thousands of dollars in tuition and fees.

Study Online

Online degree programs are more popular than ever before and for good reason; studying online is a cost effective way to get your degree. This is mainly because online college tuition rates are generally lower than traditional brick and mortar schools. Students also don’t have to splurge on gas or public transportation fees to get to class and most importantly, the flexible nature of an online program allows students to maintain a full-time job throughout the course of their studies.

Attend Community College

Community colleges are often undervalued, but they really shouldn’t be. These colleges allow students to take transferrable lower division courses for a mere fraction of the price of what most four year institutions charge. The majority of universities, even Ivy League, accept transfer students from community colleges and in many cases offer exclusive scholarship opportunities to them. Therefore, community college can potentially save students bucket loads of cash without dampening their chances of eventually attending a prestigious four-year school.

Spend Wisely

One of the biggest mistakes students make is using their student loans to buy frivolous or unnecessary items such as the latest iPhone or on expensive nights out. Students looking to reduce the amount of loan money needed should always spend wisely. This includes shopping at discount stores, using coupons, waiting for sales and using their student card wherever it is accepted. These may not sound glamorous, but these choices can save students tremendous amounts of money.

Students can potentially cut their amount of graduating debt in half or even more so by following the above steps. All is needed is a little careful planning, budgeting and an eye for a good deal.

How to keep the stress of monthly credit card debt payments at bay

Rising costs of living and topsy-turvy global economy have made millions of Americans to put daily essential expenses and even outstanding debt repayments including mortgage and credit card debt on hold. However, this can’t be a stable solution to one’s financial problems. In fact, this may result in enduring delinquent debts which are likely to grow with pre-set interests over time. Paying a lump sum can just make a dent in the debts; so it’s better to pay off the debts systematically. If you’re in knee-deep credit card debt, you must bring some changes in your behavior and also change your perspective towards paying off the debt.

Strategies to pay off credit card debt

In order to pay off outstanding credit card debt with less effort, you should maintain a system and follow some strategies. Here are the strategies that you can follow to get rid of credit card debt without stressing yourself.

Create a strict budget – Owing debts is like putting calories. If you put more calories than what you need, it will result in over-weight or obesity. Similarly if you owe more debts than what you can afford, it will result in delinquent debts. So don’t spend more money than what you make, otherwise it will enhance your debt burden. Debt is insidious; the worst thing about owing a debt is that it keeps growing. Even after getting the numbers in balance, you will find that the outstanding debt amount is still much more than what you actually owed. To avoid such a situation, you should shed your debt. Spending judiciously is the only way to shed outstanding credit card debt as well as other debts. You must adopt the tricks of being frugal. Create a strict budget and follow it religiously. Don’t spend for anything which is not necessary for you right now. You need to avoid being extravagant. On the other hand, you can also shed existing debts by earning more, but this is not always possible. However, if you can do it, spend the additional dollars you earn for paying off the debts.

Use cash or debit card – Instead of using credit card, start using a debit card in order to cut down credit card debt balance. It would also help you to prevent accruing more debt along with more interests on your credit card. If you keep using your credit card whenever you go for shopping you may not be able to reduce the debt balance. Moreover, you will be deeper down in debts. Therefore, you must try to use hard cash or a debit card while shopping.

Renegotiate with your creditor – If you fail to reduce your debt balance even after following strict budget and using credit card judiciously, you can contact with your credit card provider. Ask them politely to offer you a new deal with lower interest rate on outstanding balance. If you’re an old and loyal customer of the company with good repayment history, they may consider your proposal. Credit card companies know that if they don’t provide their customers with better deals, the customers may switch to another company for better deal and transfer the balance to the new credit card issued by the new company.

File for bankruptcy – If you still owe huge amount of debt even after trying all potential debt-reducing strategies, as the last haven, file for bankruptcy. Filing for bankruptcy is a lengthy and difficult process. Moreover, it will reveal your financial situation. So if you have no problem with that, then you can file for bankruptcy. However, you must talk to an experienced bankruptcy attorney before making any final decision.

Credit card debts can literally ruin a person’s financial life. The sooner you get yourself out of this debt-web, the better.

How to get a personal loan with fair credit

People generally go for the personal loans as the last options of getting financed. A tough credit checking procedure and the expensive nature makes it troubling for the borrowers. Still, the numbers of borrowers are not a few one. There are a lot of people who are seeking financial solutions under different schemes of personal loans. Bad credit loans are not so easy to manage. If that gets easy, you must know that you will have to pay more interest with it. But, what actually happens to the loans with fair credit? Well, the fair credit personal loan has a different borrowing procedure than that of the bad credit loans. Here you get information in details:

Credit union help:

For getting a personal loan with fair credit, you may seek help to the credit union. In fact, the credit union facilitates people with favorable financial solution. In fact, you can treat as a best alternative to the personal loans lending money through a fair credit checking offering an affordable rate. This is a better solution because you will get a loan offering minimum 2% less interest than that of the traditional money lenders. So, to get a fair judgment, a credit union is always better to get financed with personal loan.

Negotiation with the bank agent:

While you are seeking personal financing, you will definitely go to a bank to get financed. And to get financed in the banks there are always options to negotiate with the lenders. The banks have their agents. And once you come up to the application procedure, you will have to be seated with the agent. This is facilitating for the banks as well as for you as a borrower. There you will have the opportunity to negotiate for a fair credit personal financial aid. In fact, you may get facilities to receive a loan with low interest as well even if you do not have the required credit.

Getting loan offering collateral:

Sometimes, you may not manage a fair credit personal loan. The credit may not be sufficient to let you facilitate with the loan and terms and conditions you want. In that particular case, you must get to follow another tricky way to make the application attractive. Making the application attractive does not indicate that you will use the literary language in the loan application. You must have to offer collateral to the lenders. This might work to let you get an affordable debt. Loans lent with collateral are less expensive in nature as it provides the best and highest security to the lenders. All the risks are to be taken by the borrowers.

Seeking help online:

Well, the online lenders are always available for you. Make a proper research and discussion along with negotiation and then facilitate yourself with a fair credit personal financial aid. The online lenders offer financing with a lot of variety. So it is quite easy to manage the financing you want.

How a Hulbert Financial Digest Subscription Can Help You Invest in Stocks Better

If you are looking to invest money in stocks and shares then there is one very effective way in which you can ensure that you make the best choices available – and that’s by subscribing to a solid investment newsletter either online via email or by post. You can then follow the recommendations inside it and hopefully start to make some serious profits with your investments. But how can you separate the best investment newsletters from the ones that never perform? Thankfully there is a tool at hand which is managed by a guy called Mark Hulbert. He has tracked all investment newsletters for over twenty years and then publishes the results in his Hulbert Financial Digest rankings. Each issue shows performance levels and data on all the best investment newsletters that monitors and reviews anonymously so that the advice given is as down the line and independent as possible.

Hulbert Financial Digest Subscription from Mark Hulbert

Mark Hulbert is very accurate and detailed in his newsletter reviews. He subscribes to every single investment newsletter and then compares the advice and tracks the recommendations on sale prices and stocks. The Hulbert Financial Digest includes research as well academic studies into each newsletter and even shows the reader what the most effective way of picking a winning stock newsletter is so they can simply focus their attentions on the longer term, risk-adjusted performance rather than simply following the advice of wild and inaccurate stock picks. This is why a Hulbert Financial Digest Subscription is such a valuable asset to any person who wants to get ahead with stocks and shares in the modern market.
Hulbert’s Financial Digest Also Assesses Risk Adjusted Performance

Mark Hulbert also looks into risk-adjusted performance as this is a very important concept when trading in stocks and shares. If an investment newsletter invests only 50% of its portfolio in stocks then you can assume that will all things being equal, it will be only be half as risky as the actual market. Put in simple terms, an investment newsletter that is only ever half as volatile as the actual market can never be expected to go on to beat the market in absolute terms.

The Top Fund Newsletters in 2012 According to Hulbert’s Financial Digest

Looking at the Hulbert Financial Digest Rankings that have been published, it’s possible to see that the best performing stock newsletter over the last decade has been the No-Load Mutual Fund Selections and Timing one (also known as the NLMFS&T Newsletter). Looking deeper into the results using Mark Hulbert’s Financial Digest you can see that the No-Load Mutual Fund Selections and Timing investment newsletter returned an annualized 10.3%. You can compare this to the Wilshere 5000 newsletter which showed 11.9% – but the difference being that the NLMFS&T investment newsletter yielded these results with 54% less volatility than the index.

According to Mark Hulbert and the Hulbert Financial Digest, the editor of NLMFS&T has been very shrewd in his timings and had made some excellent selections on good funds. Mark Hulbert recommends this newsletter as it never lost him anymore than 7% over an annual period of time.
Another well-ranked investment newsletter is the Investment Quality Trends one. This is one of the best stock newsletters and tends to concentrate on larger stocks which have big dividend payouts. The Investment Quality Trends newsletter returned a yearly 14.2% with 25% less volatility than the Wilshire 5000 investment newsletter.

Next up on the Hulbert Digest Rankings is the No Load Fund*X investment newsletter. This stock newsletter always looks to funds that have better short term results for an investor who wants quick returns. No Load Fund*X stock newsletter returned an annualized 19.3% in a ten year period with not as much volatility as the Wilshire 5000 newsletter.

In fourth position on the Hulbert Financial Digest Rankings is Marketimer from Bob Brinker. According to Mark Hulbert, Brinker’s fund picks are timed superbly and tend to put him well ahead of the market. In a decade of being reviewed via the Hulbert Rankings, his Marketimer investment newsletter showed an annualized 13.2%, which means 19% less volatility than the market.

How to Pick the Best Performing Investment Newsletters

Don’t go away and immediately subscribe to any of these investment newsletters. You need to first make sure that you will be investing enough money in order to make the recommendations worth it to you – from a financial and time perspective. All of the newsletters described in this article will set you back at least one hundred and fifty US Dollars a year. If you have a portfolio of $5,000 Dollars then that money could account for 3% of your total annual money – which is quite a substantial amount; so you need to be sure this is the right decision for you.

To make your own mind up make sure you check out the website of the investment newsletter. Some questions to ask are:

1. Does it look quality and is it authoritative from a leading thinker in the stock market?
2. Are there impressive online customer reviews for this investment newsletter?
3. Are you comfortable with the style of advice and the trading styles mentioned?
4. Will you need to be frequently trading in order to get the best from the subscription?
5. And finally… how does it perform in the Hulbert Financial Digest (make sure you subscribe)?

Things of Investing in Stocks and Shares as a Long Term Plan

Once you have chosen an investment and stock newsletter to suit you then you will need to stick at it at least a couple of years as you should be in this for the long term. Even the best and most well performing investment newsletters will have a bad year so you need to have a long-term plan and approach to how you do things. Making money in stocks and shares is not a quick win strategy, but by taking the advice laid out in this article and by subscribing to the Hulbert Financial Digest you should be able to limit your mistakes and let you portfolio start to work a lot harder for you.

Freee Online Credit Report

These days a good credit rating is more important than ever before. Having a bad credit rating is the modern day equivalent of being a leper; you will be shunned and rejected by people and businesses everywhere you go. With so much of our economics today running on credit, it is no wonder why people hold credit ratings with such great importance. I almost never actually use cash anymore for anything when I shop. Next time you’re in a long line at the supermarket, count how many people ahead of you only pay with cash. Repeat this little experiment a few times and you’ll see what I mean.

So it is a good idea to keep a close watch on your credit rating health. When was the last time you checked that? If you can not remember, its probably a good idea to get a freee online credit report.

There is a number of sights to get free online credit reports from, and most of them are very easy to use. I recently gave ‘freecreditreport.com’ and I was not very satisfied. It is true, you do get a freee online credit report, however it does not have a lot of details in it. Basically, you just get your overall credit score from Experian, without any specific records. To get more details, or to see your score from the other credit agencies, you have to perform an ‘upgrade’ your account which of course costs money.

Having a good understanding of your credit rating is worthwhile, however, and if the score you get in your freee online credit report is lower than you thought then it would be its probably worth paying the fee to find out why is that so. Sites that offer freee online credit reports are apparently gambling that you will want more information. Fortunately for me, I discovered my credit rating was higher than I’d thought, so I was happy with my freee online credit report by itself.

One thing to watch for if you sign up for a freee online credit report is any additional memberships the site signs you up for. For example, ‘freecreditreport.com’ automatically signs you up with a creadit service called Triple Advantage, and while your initial membership is free if you do not cancel it within a month you’ll start getting regular monthly charges. The service is actually interesting, as it allows you to track recent changes to your credit rating. If you are especially worried about current trends in your credit rating, it may be worth holding on to your membership there, just in case.

Employee or contractor – what to think of?

If you have decided to take on someone to work with you, should that person be an employee of your business, or an independent contractor?

Emily Coltman ACA, Chief Accountant to FreeAgent – who provide an award-winning online accounting system for freelancers and small business owners – gives her top tips on the different financial and other issues you may encounter when working with employees as compared to contractors.

Tax responsibilities

If you take on an employee, you must register as an employer, run their payroll and pay PAYE and NI, file the right forms with HMRC at the right time, and make sure you’re ready for RTI.

When you work with a contractor, you must be sure they really are independent. If they are a sole trader and found to be an employee by HMRC, then it’s you who would be liable for the extra tax. However, if they trade through their own limited company, then it’s that company that would be liable for any extra tax.

Paying them

For your employees, their wages will often be their only source of income, so even if business cashflow is tight, you can’t delay or avoid paying them!

With a contractor, you have more flexibility than with an employee to negotiate payment timescales and to pay less than the agreed fees if they don’t cut the mustard. But it’s important not to push them too far, or they won’t want to carry on working with you, and your relationship with them will be soured.

Legal

When you take on an employee, you must know your and their rights and responsibilities under employment law, which is a very complex area. For example, you could have to pay statutory sick pay, or maternity or paternity pay. You must give your staff paid time off, and put a contract of employment in place. The list goes on. If you don’t have an HR department, consider using an outsourced HR service to help with this. This is a very easy area to fall into a trap on, because as the proverb says, “You don’t know what you don’t know.”

A contractor should have a standard contract for services, but again you should be aware of the ins and outs of this and what it would mean for you in the event of a dispute. It might be as well to have the contract checked by a friendly solicitor or legal expert.

Work

You must give your employees work to do, and pay them their full salary even if they have few tasks to do. For example, in an accountancy practice, the months of February and March are often very quiet, because the key tax filing deadline of 31st January has passed and the new tax year has not yet begun. Staff in the practice still have to be paid their salaries even if they are not carrying out chargeable client work.

But colleagues who worked as independent contractors often didn’t come in full-time during February and March. You can ask a contractor not to come in, and not pay them, if you don’t have any work for them to do.

Development

Relating to the above point, as a good employer you should give your employees regular appraisals and work with them to help them grow and develop their career path.

Although you should also review your contractors’ performances, their career growth is their own responsibility rather than yours.

Involvement

With all these responsibilities why do business owners take on any employees, rather than simply staffing their business with contractors?

Firstly, because HMRC are on the alert for people avoiding tax by pretending to be independent when they’re actually not, and they will levy that extra tax.

Also, when you’re growing your business it’s important to build the right crew to work together and stay together. When your team are employees who plan to stay with the business long-term, you have the potential to build a much stronger and more effective crew.

Contractors may well have other projects to do, and may not feel so much like one of the team. That said, I’ve known contractors who were as much part of the crew as employees. It depends on the individuals as well as their status.

You need to take into account all the above before deciding on whether to hire an employee or a contractor.