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...]
Umbrella companies act as a contractor's all inclusive back-office administration team. It means you don't have the burden of form filling, dealing with HMRC or understanding ever changing legislation.
A good umbrella company service
When you register with an umbrella company you get:
An umbrella company provides a hassle free payroll mechanism which you can use as and when needed. It doesn't matter whether you get paid weekly, monthly or only very occasionally.
The average charge for an umbrella company service is around £65 per calendar month which is deducted from your pay so you don't actually have to send them any money. This fee can be tax deductable to the actual cost to you is far less than advertised.
Contractors use umbrella companies because of their:
You'll also like the umbrella company service because there are no long term commitments.
There's no mystery to an umbrella company, a straightforward solution to an otherwise complex process - such as running your own limited company.
Umbrella companies can save you money and leave you to get on with your life.
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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.