Umbrella Companies for Engineers
There are a number of umbrella companies for Engineers.
If engineers are inside IR35 they have two options. They can simply pay the IR35 tax or they can join an umbrella company.
So, how do they know if they are inside IR35 or not?
IR35 Employment Status Test
HMRC have created an online IR35 Employment Status Test to help contractors make up their minds.
However, one must have a word of caution on this.
This test does not have any legal validity. It is merely an indicator.
Remember that HMRC is not a neutral judge of this.
They create a previous IR35 test that seemed to show that most contractors are inside IR35 before they scrapped it.
It is the law that determines your IR35 status and not a test created by HMRC.
Operating Via a Limited Company
However, if you do the test and it finds that you are outside of IR35 then I think it is fairly safe to say that you can operate via a limited company.
If it finds you insde IR35 it is still worth talking to an IR35 expert.
You might also be able to change your contract and working practices – and then sit the test again.
Need an Umbrella Company
However, if you do fail the test then you may need an umbrella company.
Even though the Government has stopped some of the expenses that contractors can claim via umbrella companies, it is still marginally better, financially, than simply paying the IR35 tax.
You can then choose one of those umbrella companies for engineers.
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If you do need an umbrella company you could try one of the following:-
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For Mortgages specially designed for contractors try Specialist Contractor Mortgages.