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...]
An umbrella company is simply a ready-made ready-to-go limited company that contractors/temporary workers make use of while on contract.
It's the hassle free alternative to
There are no long-term commitments and you only pay for the service when you are in work.
When you use an umbrella company there's none of the stresses of constant form-filling and paperwork that comes with running a limited company, nor the financial penalties of working directly through a recruitment agency.
An umbrella company gives you all the upsides like expert professional guidance, inclusive insurances and limited company status - it's a sophisticted administration service specifically designed for today's busy contractors.
Umbrella company's fees vary greatly from one to another. The good news is that the umbrella company service is an allowable business expense, so if the umbrella company's gross fee is, say, £100 you only pay about £75 after tax.
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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.