Why would a Contractor consider using an Umbrella Company

If you're an individual who is considering becoming a contractor you probably already know that you need the support of a ‘back-office' support team. This is because as a contractor you need help with your administration.

Contractors need help with matters such as:

• Getting 'limited company' status

• An invoicing and money collection facility

• Guidance on how to trade within the law

• Help dealing with a load of HMRC forms and red-tape

• Ensuring you get all the benefits you're rightly entitled to have

Form Filling & Deadlines

You could set up & manage your own limited company, but that means you'd become responsible for all the above as well as having to pay for the services of a specialist accountant.

This is quite a good way of contracting if you're one of those people who enjoy coming home after a long days work and sitting in front of a computer filling in endless excel spreadsheets.

Admin & Hassle

But, what about if you're not good at form-filling, remembering vital deadlines or have better things to do with your spare time? Price, convenience and ease of use are the main benefits of using an umbrella company:

• It seems crazy to expect any contractor to have to take care of the mass of administration.

• Umbrella companies are a cost effective and simple solution to this problem.

• It's free and takes just minutes to register with an umbrella company.

The umbrella company will contact your recruitment agency and sort out all the legal contracts for you. It will also handle all the necessary HMRC forms and make sure you're complying with all the latest employment laws.

Free Expert Advice

So the days of contractors having to be expert accountants are well and truly over. Gone is the legal burden resting with the contractor. Gone are the late nights pouring over complicated forms.

An umbrella company service is designed specifically around contractor needs and comes at a very reasonable cost - which is actually cheaper than a standard accountant's charge.

What's even better is that an umbrella company's fee often includes many other features such as inclusive insurances, access to free expert advice and special discounts on a range of services like mortgages & pensions.