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...]
I have to Register with an Umbrella Company BUT
Numbers a Mystery?
If you're new to dealing with an umbrella company it can be a daunting task to ring them up. It's not always easy for an experienced contractor either!
For many 'numbers' are a mystery - always have been and always will be - and having to hold a conversation with a stranger on the subject is like sitting a vital exam which you know you stand little chance of passing.
First of all, don't worry! There are at least a hundred different umbrella companies out there, all chasing your custom. If you don't like, or just simply don't understand, the first one you've contacted then just call another.
When you first call an umbrella company, you will be put through to their 'registration' team.
An individual who should know everything about the process and be able to answer every, and any, question you may have.
Do not forget you are the customer, it is your money; ensure you understand what you're being told. If you don't, then don't be afraid to ask them to explain it again - as many times as necessary for you to fully understand.
Check List of the basic things you will need to know before you make the call:
What you want to know from your umbrella company representative:
Finally, and a point which can't be stressed too much - you are the customer.
The customer is king. Spend your money with an umbrella company who works hard to earn it. Not with one who thinks they're doing you them a favour.
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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.