IR35 Is an Umbrella the Right Choice

If you're new to contracting, you may have come across IR35. This refers to a government legislation that deals with contractor's tax. Since 2000, IR35 has been a hot topic in the world of contracting.

You Say This He Says That

The problem with IR35 is that it is unclear. One lawyer says one thing, another lawyer says something else. HMRC say 'this' and contractor lobbyists say' that'.

• One judge may agree, another judge won't.

But, there is a way round the confusion & uncertainty. If you want to stay away from investigations, lawyers & HMRC, your best option is to use the services of an umbrella company.

• An umbrella company takes away all the paperwork that comes with contracting through your own limited company.

Life in Chains

Do you want to spend all your own time in administration and paperwork? Or do you want to come home & have a life?

You do have a choice: it's called the umbrella company service. Would you really want a life chained to your desk? Doing this:

1. Register your company at Companies House
2. Complete Annual Returns
3. Deal with HMRC
4. Corporation tax return
5. Memorandum of Association
6. Articles of Association
7. Form 10 - Directors' and Company Secretary's Names & Addresses
8. Form 12 - Company complies with the terms of the Companies Act

And that's just to set yourself up!

On the other hand, registering with an umbrella company takes just minutes, is cheaper and all the work is done for you.

You can register on the phone or online

An umbrella company takes away all the hassle of IR35. You don't have to worry about HMRC, lawyers or tax investigation. The great thing about umbrella companies is

• They do all the paperwork
• Take care of HMRC and all your taxes and form-filling
• Lift the burdens and hassles from your life of contracting

Real Life Tale

Contractor Leslie Scott, who has been contracting for over eight years, is most definite about which way is the easiest:

• "I used to manage my own limited company. It was a pain, right from the start. As if filling out endless forms and meeting deadlines and spreadsheets were not enough, there was bl**dy IR35 - excuse the language!
• "Not a week went by without IR35 being raised, if not the agency, then my client or my accountant.
• "There is one option. How to find the best umbrella company - do yourself a favour."

Up to You

Have a look round this site, get to know a bit more about contracting, IR35 and umbrella companies. Maybe you would be better off running your own limited company - there are some contractors who prefer this way to do business.

• Your choice. Pick up the phone or register here, right now in a minute or two.

Don't forget: No long term commitments. If you don't like the umbrella company - leave, with no penalty. Yes, it really is that easy!