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...]
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It\'s the question that new contractors ask the most: What is an umbrella company?
Having just secured your first contract, you're feeling elated, exited, raring to go... and then your recruitment agency informs you that you need to set up your own limited company or register with an umbrella company.
Elation turns to confusion, concern and a little fear... What is an umbrella company, what are my tax commitments, am I in more deep than I can cope with?
Umbrella Compare provides comprehensive, bite size chunks of information that will help you understand all you need to know for your first contract.
Grab yourself a coffee, you have some reading to do. In less than 10 minutes you can pick up the basics, compare market leaders and get registered with an umbrella company. In around 20 minutes you can have a firm understanding of the jargon used, tax requirements, umbrella company processes and make a more informed decision when registering with your chosen umbrella company. With an hour\'s dedicated time you can learn all there is to know about umbrella companies, there history, compliance issues, tips and tricks and have complete piece of mind when choosing your umbrella company.
However long you spend educating yourself with our guides and articles, the most important fact is that all the companies listed in our umbrella company comparison calculator have been vetted and approved for listing. This means we have checked their dealing with HMRC, we have reviewed their accounts and checked through their business in detail. Choosing an umbrella company through umbrella compare is the right decision, first time.
An umbrella company is simply a ready-made ready-to-go limited company that contractors and temporary workers make use of while working.
An umbrella company is the hassle free alternative to
There are no long-term commitments when using an umbrella company. An pay for an umbrella company service when you are working.
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. An umbrella company is a sophisticted administration service specifically designed for today's busy contractors.
Why on earth would anyone want to fill in a raft of complex and detailed forms every month when there are umbrella companies out there who will do it for you? Umbrella companies are the professionals let them do what you hate to do - paperwork!"
Why Should Temporary Workers and Contractors use an Umbrella Company?
You get limited company status with an umbrella company, so your client's recruitment policy is met. You get the legal status of an 'employee' when using an umbrella company - so perks like, sick pay and maternity pay.
An umbrella company is the alternative to setting up your own limited company and hiring a fully trained and qualified personal assistant, who does absolutely everything for you. An umbrella company is your back office.
The better umbrella company services even remind their contractors, if and when, the contractor needs to do anything. Fees vary greatly from one to another. The good news is that your umbrella company fee is an allowable business expense, so if the 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.