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...]
You are here: Home | Guides | Umbrella Guides | IR35 Is an Umbrella the Right Choice IR35 Explaination
If you're new to contracting, you may have come across IR35. This refers to a government legislation that deals with contractor's tax.
The problem with IR35 is that it is unclear. One lawyer says one thing, another lawyer says something else. HMRC say 'this' and contractor lobbyists say 'that'.
But, there is a way round the confusion and uncertainty. If you want to stay away from investigations, lawyers and HMRC, your best option is to use the services of an umbrella company.
Do you want to spend all your free time sorting out forms and paperwork? Or do you want a life?
On the other hand, registration takes just minutes, it's cheaper and all the work is done for you.
An umbrella company takes away all the hassle of IR35. You don't have to worry about HMRC, lawyers or tax investigation. The great thing about umbrella companies is
You can see if you fall Inside or Outside of IR35 using the IR35 Status Calculator
Have a look round, get to know a bit more about contracting, IR35 and umbrella companies. Maybe you would be better off running your own limited company - there are some contractors who prefer this way to do business.
Don't forget: No long term commitments. If you don't like the umbrella company - leave, with no penalty. Yes, it really is that easy!
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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.