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...]
Setting up your own limited company can be time consuming and complicated. You'll have to be competent with spreadsheets, good at form filling (there's a load of that) and able to understand what the guy at HMRC is talking about - because if you don't all your money will be spent on fines.
Using the services of an umbrella company is like eating out at a restaurant instead of cooking yourself. No slaving over bubbling pots and pans, timing all the food to be ready at the same time then having to do the washing up.
In between which you're keeping your fellow diners supplied with drinks and condiments. No, you walk into the restaurant, order, eat and leave.
Who on earth wants to spend all day at work then come home and sit in front of your PC slaving away at statutory administration? No, you probably want a life.
Well, don't worry, you have an alternative choice which is painless, effective and very reasonable in cost. It's called an umbrella company.
Registering with an umbrella company means you pass all your administration to someone else. Set up your own limited company and you'll have to:
And that's just to set yourself up!
Compare with the alternative, registering with an umbrella company takes just minutes, is cheaper and all the work is done for you.
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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.