Umbrella Companies have the Answers

Paperwork Worries?

An umbrella company does all paperwork for contractors. An umbrella company is your limited company. The umbrella company service will; invoice your recruitment agency, collect your money, work out your taxes, and deal with HMRC.

More & more people are turning to life as a contractor. Some because they may have lost their full-time job and have no choice, others who make the conscious decision to change the way they work - and the rewards they get!

Paperwork NO Worries!

Whatever the reason for deciding to become a contractor, the vast majority never look back and enjoy the lifestyle & freedom that freelance contracting brings with it.

Whilst contracting has many attractions you should consider all the angles first. For example, do you want to go through all the hassle, cost & pain of setting up & managing your own limited company?

Or would you prefer to make use of one of the Approved umbrella company services out there who will take on all the administration & paperwork for you?

Reduced Form-Filling

The umbrella company service will do lots of the horrible things for you. Apart from being your 'limited company' they will;

If you're not experienced in the ways of accountancy, contracts, company law, payroll, & general administration these issues can be quite frightening at best, and an ongoing nightmare at worst.

It takes time to do these tasks properly, and you're expected to have in depth knowledge of various accounting and legal disciplines as well.

Daily Chores

The last thing you want is to get the fundamentals wrong. Inexperience and lack of knowledge is not a defence any Court will accept should HMRC find you have not completed all the necessary forms on time & correctly.

So what does an umbrella company do for a contractor? Well, actually quite a lot. In return for a modest processing fee (usually paid weekly or monthly to coincide with your timesheets) a good umbrella company will take care of all your day to day paperwork. Things like:

• Contracts
• Record keeping
• Invoicing
• Credit control
• Expenses
• Payroll
• Company law
• PAYE
• Employment law
• IR35
• The Working Time Directive and other EU laws

Do you really want to do these things yourself? Particularly at the end of your working day? There are some contractors who do, but the vast majority of freelancers are more than happy to pass this burden onto their umbrella company.

An umbrella company means contractors can get on with their contract knowing all the boring, but essential, bits are being done by someone else.