Is an Umbrella Company my Best Choice

Being new to contracting you may be a bit dazzled by everything that's going on. But landing the contract is just the start. Now comes the paperwork.

If you haven't already been told you'll soon find out that however good you are at "widget development ++", engineering or teaching you won't be welcome on your client's site without setting yourself up as a limited company first.

Time Consuming & Complicated

You'll have to be competent with spreadsheets, good at form-filling (there's a load of that) and able to understand what the guy at HMRC is talking about - because if you don't all your money will be spent on fines.

Who on earth wants to spend all day at work then come home and sit in front of your PC slaving away at statutory administration? No, you probably want a life.

Well, don't worry, you have an alternative choice which is painless, effective and very reasonable in cost. It's called an umbrella company.

Order, Eat & Leave

Using the services of an umbrella company is like eating out at a restaurant instead of cooking yourself. No slaving over bubbling pots & pans, timing all the food to be ready at the same time then having to do the washing up - in between which, you're keeping your fellow diners supplied with drinks and condiments.

• No, you walk into the restaurant, order, eat and leave!

Pass it Over

Registering with an umbrella company means you pass all your administration to someone else. Set up your own limited company and you'll have to:

1. Register your company at Companies House
2. Complete Annual Returns each year to update Companies House, this requires an annual fee.
3. Tell HMRC if the Company has any profits or taxable income in a Company year.
4. Complete an annual corporation tax return and pay the taxes within a set time.
5. Memorandum of Association
6. Articles of Association
7. Form 10 - Provides Directors' and Company Secretary's Names & Addresses, together with the Registered Company Address.
8. Form 12 - States that the Company complies with the terms of the Companies Act

On The Other Hand

Registering with an umbrella company takes just minutes, is cheaper and all the work is done for you. Registering with an umbrella company can be done either on the phone or online, here at Contractor Supermarket.

Umbrella companies are designed to make the life of a contractor as simple and stress free as possible. This is done by having a team of dedicated & trained staff all geared up to handle every aspect of a contractor's administration for them.

Umbrella companies are the future of contracting: fast, simple and extremely efficient.

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