Contractors have Never Had it so Good

Contractors and freelancers benefit from using the services of an umbrella company. An umbrella company will take care of all the hassles & administrative responsibilities associated with contracting. If you're new to umbrella companies click here.

• An umbrella company is a great option for today's modern contractor who doesn't enjoy the admin side.

The umbrella company service provides contract workers with 'limited company'  status, which enables the contractor to work on multiple contracts if necessary, whilst leaving the umbrella company to do all their administration. This saves the contractor a lot of hassle usually associated with running a limited company.

Lots To Do

Here are just some of the tasks which you can off-load to an umbrella company:

1. Processing timesheets
2. Understanding & processing legitimate business expenses
3. Raising invoices in the correct & punctual manner
4. Correctly calculating and paying the tax and National Insurance due to HMRC
5. Collecting payments from third parties (either your recruitment agency or client)
6. Dealing with legal contracts
7. Keeping & filing records in accordance with current legislation

Be aware of umbrella company myths, there are also offer many additional benefits such as:

• Holiday pay
• Sick pay
• Maternity pay
• Pension schemes
• Private healthcare
• Inclusive insurances
• Childcare vouchers

The umbrella company service offers a very stream-lined, hassle free way for contractors to operate. For example, any contractor who uses the services of an umbrella company has no worries concerning IR35 (one minute guide to IR35 here), MSC, income shifting or any of the other legislation HMRC uses to penalize self-employed contractors.

Leagal Eagle

The umbrella company fulfils all the legal obligations for them. In addition, the monthly fee includes many benefits such as access to legal advice.

A contractor running their own limited company would have to spend a great deall on accountancy fees, let alone the compulsory insurances & professional advice regarding all the complex legislation surrounding contracting. An umbrella company does all this for you.

By using the umbrella company service the contractor becomes an employee of the umbrella company, while retaining independent flexibility to find and choose their own

• Work
• Clients
• Rates
• Terms & conditions

Running their own limited company may suit some contractors, but the majority of contractors will see the obvious benefits that come from using the services of an umbrella company. Each contractor has their own set of individual circumstances and needs to make their own judgment.

The umbrella company service helps contractors save time on administration, time which would be better spent finding new business or working on existing contracts. Umbrella companies are an easier way for contractors to get paid and more often than not to reduce their tax bill - whilst at the same time reducing their paperwork to a minimum.