Viewing What is an Umbrella Company? from 5 Umbrella Company Paperwork - Umbrella Company Paperwork Written by Contractor Supermarket

---

Contractor Articles Feed - Get the latest Contractor Umbrella Company Articles

---

What is an Umbrella Company?

An umbrella company is simply a ready-made ready-to-go limited company that contractors and temporary workers make use of while working.

An umbrella company is the hassle free alternative to

• Setting up and managing your own limited company or
• Working directly for a recruitment agency

There are no long-term commitments when using an umbrella company. An umbrella company is specifically designed for use only when you are working. You only pay for an umbrella company service when you are working.

 

Your Own Back-Office Support

When you use an umbrella company there's none of the stresses of constant form-filling & paperwork that comes with running a limited company, nor the financial penalties of working directly through a recruitment agency.

An umbrella company gives you all the upsides like expert professional guidance, inclusive insurances and limited company status. An umbrella company is a sophisticted administration service specifically designed for today's busy contractors.

Emma Hainsworth, Managing Director of Simplify Umbrella company, asks:

"Why on earth would anyone want to fill in a raft of complex and detailed forms every month when there are umbrella companies out there, like Simplify Umbrella, who will do it for you? Umbrella companies are the professionals let them do what you hate to do - paperwork!"

 

Why Should Temporary Workers and Contractors use an Umbrella Company?

• Takes just minutes to register with an umbrella company - online or telephone
• An umbrella company is the hassle free way to work
• Paperwork & administration chores are not your strength

 

Benefits of Using an Umbrella Company

• You get limited company status with an umbrella company, so your client's recruitment policy is met
• You get the legal status of an 'employee' when using an umbrella company - so perks like, sick pay and maternity pay
• An umbrella company is the alternative to setting up your own limited company and hiring a fully trained & qualified personal assistant, who does absolutely everything for you.
• An umbrella company is your back office.

 

What Does an Umbrella Company do?

• An umbrella company takes responsibility for all paperwork and legal burdens
• An umbrella company raises invoices in the correct & proper way
• An umbrella company makes sure your money is paid on time with no delays
• An umbrella company calculates the right amount of tax you need to pay, provides a detailed payslip and transfers your pay to your personal bank
• An umbrella company deals with HMRC on your behalf in matters like
  • Tax
  • VAT
  • Statutory returns

Hainsworth finishes by confirming that the better umbrella companies even remind their contractors if, and when, the contractor needs to do anything:

"An umbrella company, like Simplify Umbrella, will let you know if you need to do anything and, if so, by when."

Umbrella companies fees vary greatly from one to another. The good news is that your umbrella company fee is an allowable business expense, so if the umbrella company's gross fee is, say, £100 you only pay about £75 after tax.

 

Visitors who read this article went on to read these articles:

1. Calling an umbrella company for the first time
2. Ask an Expert - what's your contract or umbrella company question?
3. How to become a temporary freelance contractor
4. Over 70,000 of the latest contract jobs in the UK
5. Job Centre: part time jobs, temporary jobs & contract jobs

 

 

written on2010-08-22 00:06:18

Add Comments and Feedback about What is an Umbrella Company? in our Forum