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 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.
What exactly do you get for your money? You may be surprised to find that standard levels of service at reputable umbrella companies include:
There are even more benefits that come with the umbrella company service:
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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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.