Employment Status

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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Umbrella Companies Are they worth it Umbrella Company Advantages

An umbrella company can cost a contractor around £60 per month. It might seem a lot, but really it is very good value. It works out to about £3 a day - and that's before your tax relief on the fee is calculated, so it's likely to be nearer £2.50.

  • Hunt around and you'll probably get a deal or special offer from an umbrella company

Are Umbrella Companies Worth the Money?

What exactly do you get for your money? You may be surprised to find that standard levels of service at reputable umbrella companies include:

  • Full registration and validation process as required by law
  • Comprehensive contractor employee pack
  • Simple to follow instructions taking you step by step through the processes
  • Inclusive insurances
  • Complex government form filling on your behalf
  • Fully trained umbrella company staff who are on hand to answer questions
  • Complete on-line interaction and access to your records
  • High data security levels and emergency back-up
  • Correct processing of business expenses

Benefits of an Umbrella Company

There are even more benefits that come with the umbrella company service:

  • You can also get a Personal Account Manager at your umbrella company, access to their legal department and the benefits of an HMRC Dispensation with some umbrella companies.
  • Even a 'top ten' contractor umbrella company won't ever be an expensive choice.

There's so little for you to do when you join an umbrella company. In fact, you have nothing to do! Your umbrella company processing fee covers all the paperwork administration. Your umbrella company does all the work for you. Send your umbrella company your timesheet and you're away.

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HMRC Compliance

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.