Are you a contractor? If you work for someone else, it is important to know whether you are working for that person in an employed capacity or in a self-employed capacity as an independent contractor.
Your employment status will determine the charge to tax on income from your employment or self-employment. It will also determine the class of NICs, which are to be paid.
Umbrella Companies employ you for tax purposes and complete central returns for all their contractors. It's less hassle and more flexible for you but take home pay is typically less than that the limited company option.
The best option for you depends on your plans, 'one off' contract or 'contractor for life'? [Read More...]
...or they damn well should be. The umbrella company industry saves the Chancellor one billion pounds a year.
The reason why we have umbrella companies is down to EU Employment legislation. As a direct result of this law(s) client's recruitment policy states they will only deal with limited companies, not individuals.
That's why contractors need ‘limited company' status.
So don't get side-tracked by those claiming umbrella companies are purely designed so contractors pay less tax. Are you listening Mr Balls?
Perhaps you should read this handy guide to umbrella companies and HMRC, before your next comment.
Ed Balls says umbrellas are bad for us because contractors are paying too little tax. Well, the alternative to the umbrella company service would be to wind the clock back, and get contractors to manage their own limited company.
Contractors who manage their own limited company actually claim more expenses than contractors using an umbrella company. So Balls wants even less tax from contractors than they pay now!
Umbrella company contractors actually save the HMRC £1,000,000,000 in tax every year, according to UC Finance. So how, Mr Balls, is your attack helping anyone out?
It doesn't help contractors, business or HMRC - who does it help, what have you achieved?
The umbrella company service is simply the fast-food of accounting. It encourages a healthy UK PLC temporary workforce, because it takes the hassles of paperwork away from the contractor.
There are no dark secrets, no avoidance, no story.
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It's the basics... Compliance with Tax, VAT, PAYE and fiscal arrangements is mandatory for contractors regardless of whether you use an umbrella company or your own limited company.
Incredible then that there are still rogue umbrella companies and limited company accountants who expose their contractors to fraud. Umbrella Compare provides THE solution, we thoroughly vet all umbrella companies and limited company accountants that we list [Read more...].
Umbrella Compare provides a holistic overview of contracting with the aim of helping new and old contractors find the right payroll solutions. Contracting should be about focusing on the contract, not payroll, accounting, HMRC and bureaucracy.