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...]
When you're looking for the best umbrella company, you need to consider what you mean by the 'best deal'.
Is the amount you pay the most critical factor? Maybe it's the one that's offering the most extras. For some, customer service and reliability are the key expectations.
So which of these will your decision be based on?
Whichever, you can say 'good bye' to the downsides of contracting.
One seasoned contractor explains the features and benefits of the umbrella company service like this;
"I work well with my umbrella company, and it really does make contracting a lot easier. Now I don't do paperwork I'm a lot less stressful.
"The admin side is just part of it, though. I get even greater relief knowing my tax is taken care of properly and none of the complex stuff comes anywhere near me!
"I'm not tied in to any long term contract, it's effective and risk free - what's not to like about the umbrella company service?"
An umbrella company isn't right for all contractors but working as a contractor can take up a lot of your time. This is exactly why the umbrella company service is perfect - because it means you don't have any accounts to do or forms to fill in at home. If you think you have the time and capacity to manage your own limited company alongside your contract work, then you should read these limited company guides to get a good feel and balance between the 2 options open to you.
An umbrella company does all your paperwork. It's cheaper than paying for an accountant, and leaves you free of red-tape.
Down to the nitty-gritty, here's some of the chores you hand over:
Umbrella companies come with Professional Indemnity and Public Liability insurances included.
An umbrella company is specifically meant to do the jobs you don't like. Can you think of better things to do than complete HMRC forms and fill in spreadsheets?
A good umbrella company will provide all of the following with their standard service costs:
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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.