The Expensive Way
We know consultants, thousands of them around the world, working in different sectors for various private and public sector clients!
Setting up and running a company from scratch is costly at the start, not to mention the ongoing monthly, quarterly and annual bills for filing, accounting, auditing etc. It is stressful, takes huge amounts of time, distracting you from running your business.
That's why we developed a simpler, cheaper and more effective solution for your company formation and administration needs.
So isn't there a simpler solution?
The Smart Way
Yes, there is! The great news is that you can share our simple company set-up solution. Lots of consultants contract through hubconsult, British owned and based in Hong Kong, saving them the cost and hassle of running a company themselves.
hubconsult and our partners run a company for you so you don't have to saving you time, money, and stress.
So there is a much smarter way of organising your company structure, and this is it!
And that is just where the benefits of hubconsult start for you!
The Inefficient Way
We can see the huge diversity in tax rates, VAT etc being paid by consultants, experts and companies around the world, and often quite different when their circumstances are the same. So many experts are not optimised on taxation. In other words, they are wasting more money, on top of the high fees they are paying on administration.
Does this sound familiar? “I am happy with my fee income but I have to pay a fortune in accounting and bookkeeping and I lose a weekend every month keeping up with the paperwork. And then, I have to pay almost half of it in tax when I'm based for most of the time out of the country!”
In fact, we just spoke to a British communications consultant in Italy who has over 55% deducted from her fees at source by her client. Hardly an incentive to work, and is actually encouraging her to think of leaving the country.
The Efficient Way
Good news is here! While your personal tax affairs are your own business, when you operate through hubconsult, your fee income generated outside of Hong Kong is paid to you gross, free of corporate tax. And that is not all...it is free of VAT too.
Being paid gross puts you more in control.
There are lots of cases where we can save you a large % of your net profit. If your business is with country A, your client in country B, and your residence in country C, then it is clear that you can optimise the location of your contracts and therefore your business income.
What your business needs..
What hubconsult gives you..
The simplest way to calculate how much you will save as a Hubconsult Associate is to try out Calculator (click the Calculator button on the menu above!). You input your revenues and costs (one-off and regular costs of running a company) as well as your tax rate on net profits, and then compare that against with what you retain as a Hubconsult Associate. You need to be registered (free) to use the Calculator. (Simplest way is log in with LinkedIn!)
If you are not ready to register, then don't worry we also have this worked example below.
For both of these examples, we use make the comparison in euros (€), whatever currency your business revenues and costs are actually in.
|How much could a Hubconsult Associate save? - here's how much!
(example freelancer with fees of €100,000 p.a.)
|Your company set-up costs||1,000||-||1,000|
|Your fee turnover per annum||100,000||100,000|
|Your monthly bookkeeper costs (x12)||2,400||2,400|
|Your annual accounting and filing costs||1,000||300*||700|
|Profit before Tax (PBT)||96,600||99,700||3,100|
|Your Corporate Tax rate %||25||-||25|
|Profit after Tax (PAT)||72,450||99,700||27,250|
|Hubconsult 1% admin charge||1,000||-1,000|
|Net Fees we pay you||98,700|
|Comparison of retained income||72,450||98,700||26,250|
|Set-up cost saving (one-off)||1,000|
|Annual cost and taxation saving||26,250|
|Hubconsult saves you after first year||27,250|
|* best value 5 year Gold Plan|
Establishing a company commits you to overhead and hassle
One thing is clear - the decision to set up a company is a substantial fixed cost commitment - both as a one-off cost and then annually. (Even if you don't have sales, you still need to pay this large overhead with bills to bookkeepers, accountants, lawyers, auditors on a regular basis. And it diverts your time away from creativity to things most of us don’t want to be bothered with - boring administration and compliance!)
Your business location is worth optimising – failure to do so commits you to greater deductions than you may need to pay
Most people's business or company is structured in a way that they are liable to more Corporate Tax than need to pay, especially when their work is international.
(We have seen deductions of over half of net profit in some cases, when NI is taken into account - much higher even than we show in our typical example here.)
Correct structure helps your business to grow
Both of these factors – administration and poor structure create disincentives to innovative, grow and employ more staff.
The Hubconsult Associate solution for those who want to be efficient: minimise admin, downtime, and deductions
We believe the Hubconsult Associate solution can tackle the problem of expensive incorporation for freelancers and SMEs.
It is a major stride towards business simplification.
We compare both the set up fees and then the annual costs, showing you an average estimate of what you can save. And the result is very good news for you!
Online, professional, safe, efficient
How is this possible? Economies of scale help you benefit from efficiency savings while division of labour allows us to provide a more effective solution to you than your existing company structure could, which by the way also allows us to provide you with a better quality service, and a network for your business.
Admin costs proportionate to the size of your business
Unlike in the typical company scenario, your costs are not lumpy. Your costs grow proportionately as your income grows, giving you peace of mind. (We know some businesses where all of their income is consumed by their company overheads. We don't want to let that to happen to you!)
As your business grows, that's when you are best placed to make huge cost savings on your annual fees. We estimate over a quarter of your net profits, on average!
As a result, based on the modest example above, a typical Hubconsult Associate freelancer will have recouped the cost of subscription after just a few months!
* assuming here our recommended Gold Plan to give you an average accounting and auditing cost of €300, which is paid upfront for 5 years.
** your Corporate and VAT rates are zero as a Hubconsult Associate. (You should seek financial and tax advice regarding your own tax and social security status. Hubconsult refers you to our Terms and Conditions regarding your own liability.)
** special client-specific requirements such as special contracting could be charged extra - for example if you ask us to review your contract details in more depth. (However, you have complete control of that.)
Our very reasonable 1% admin charge is based on turnover - for most fee income business such as freelancing, turnover does not differ greatly to profitability.
Become a hubconsult Associate today!
To recap, you have learned here that:
a) initial company set-up costs
b) annual company running costs
c) time spent on company admin
d) optimise company taxation.
The example showed how you could improve your net Profit after Tax based on lower admin costs and taxation. If you took the Calculator test yourself using your own revenues, costs and tax rates, you saw how much you could actually save, which could be more or less than this example.
Welcome to hubconsult. Right now we are offering a special subscription offer to make your annual costs even lower than normal, a tiny fraction of what you will save. Please click the button below to get started!