Which Umbrella Company
Which Umbrella Company should you choose?
See an evaluation of top UK Umbrella Companies further down the page and pick the best umbrella company for you.
What is an IT Contractor Umbrella Company?
They started up circa 1999 in response to the new IR35 tax which the Government brought out because it perceived some contractors as ‘disguised employees’.
It basically employs the contractor. This allows the contractor to claim certain expenses against tax which he or she couldn’t do as an IR35 caught contractor. Futhermore, the Company deals with all the contractor’s paperwork and admin.
Normally the contractor will fill out a timesheet and claim expenses. The Umbrella Company will:
1. invoice the agency or company,
2. deduct the expenses,
3. deduct and pay the taxes and NICs and
4. pay the contractor.
The best UK Umbrella Companies will do all this.
Read the advice below and see which one is best for you.
The PAYE one is the safest route especially for those contractors caught by IR35.
However, there are so ultra safe that contractor would only retain between 60% and 65% of the money they earn. It is mainly for contractors who are caught by IR35 or for those who like an ultra safe solution.
However, there are other types of umbrella companies which can return more to contractors. So, which umbrella company should you use?
1. Compare the Umbrella
They know how important your pay is and so want to build up a long-term relationship with you. They see, therefore, their main benefits as:
o Easy to Use. You submit a weekly or monthly timesheet online and Compare the Umbrella take care of the rest. They invoice your client, collect monies due and pay you after calculating your tax; Fast & Efficient Service. Daily payments direct to your account.
o If you are new to Contracting and have heard about IR35 or Umbrella Companies but are unsure what they are then they are happy to give you Free Advice.
o If you are a contractor but are spending your free time worrying about invoicing, accounts or tax then speak to them today.
So, they can remove the stress of tax and allow you to spend your free time doing the things you want to do – and you can keep up to 87% of your hard-earned pay.
Contact them: Compare the Umbrella
2. Outsourced Employment
For instance there is the Outsourced Employment umbrella solution which can allow contractors to keep up to 86% of the money they earn. It wokrs in a very similar way to other umbrella companies.
For more information, click on Outsourced Employment.
Limited Company Tax Solutions
Limited Company Option
You can keep more of your money by using proper tax planning whilst still using your Limited Company.
For more info click on Compare the Umbrella Limited Company Solution
Limited Company Solution
You can keep up to 86% of your money while still using a limited company. They help you to make your limited company more tax efficient.
Find oit more by clicking on Limited Company Solution