If you’re struggling to decide which route to take then contact us for help!
In this case the contractor (that is you) will essentially become an employee of the umbrella company. The umbrella company will then process timesheets received from the contractor and invoice the client (the company for which the contractor works) for work completed.
The contractor will in turn be paid as a PAYE employee less the umbrella company charges.
Umbrella companies will also allow some basic expenses to be claimed such as general travel expenses, hotel and accommodation expenses, professional subscriptions etc .However some umbrella companies also claim special expense policies that allow expenses to be claimed without proof; but Inland Revenue has been quick to challenge companies operating such bogus schemes as they are seen to encourage fraud and tax evasion.
The advantage of working through a PAYE Umbrella Company is the simplicity it offers, you need not worry about any paperwork just fill in your time sheet and get paid ,the umbrella company will handle all tax and NI deductions.
However a major downside of operating through an umbrella company is that the contractor is left with just 60%-65% of their contract.
In this case the first thing you will need to do is open a company. This might sound like a very difficult and time consuming task but it’s actually much easier than it sounds and is an area where we can be of assistance. Please see forming a company for more information.
Once you have opened your company you will need a company bank account. Once the bank account is open your company is completely operational. The company is contract can be with the end client and you as the company director will control the company bank account and decide on how much to pay yourself; which comprises of salary and dividends.
The company can also claim many business expenses such as travel and subsistence, business telephone, training and other professional subscriptions, accountants’ fees etc. Please see expenses for more information.
The major advantage of working through a limited company is that is allows more opportunity for tax planning, allows for a wider range of expenses to be claimed and allows a greater control over your financial affairs.
The downside however is that there is a certain amount of paperwork involved and it’s not ideal for people working on contracts temporarily.However in order to work in a tax efficient way your gross salary will be kept low; to maximize dividends payable to yourself as shareholder (thereby avoiding employees and employers national insurance contributions).By working through a limited company you will take home 75% – 80% of your contract.
We have made it so simple
Initial Meeting (Call us, Meet us, E-mail us)
With our initial discussion, we assess your requirements and have a good idea of your Tax, Compliance & Payroll needs, we also provide you with our advice or a second thought on your ideas.
We can talk through all the available options suiting your business needs
Once you are happy with the options and decided what best for you, for example, our business growth package, management reporting, credit control services. We agree on the frequency of reporting and deliverables. And then get sthe system set-up and ready for you.
On Hand Support
That’s all about it and you are now up and running. We spend time with you to make sure that we make it as simple as possible, we do not deviate from your existing system and apply our change management strategies to ensure everyone in your team is on board.
This starts the era of our ongoing support and business growth research, therefore, you get the best from our services.
The whole process should not take longer than a week, in some cases, we are happy to commence work from the very next day!
Switching to us:
We can understand the pain of switching a supplier, however, it is not at all like the switching a broadband supplier. In case have an existing accountant, our support process, will make it seamless. You offer a big thank to your previous accountants and we collect all the information on your behalf.
Contact either Awais – firstname.lastname@example.org or Tania – email@example.com and we will arrange to chat to you first, send you more information on our services and set up an introductory free consultation.
During this consultation, we will apply our work principles, identify structure, growth opportunities, provide
Only at the end of this consultation and only if we BOTH see the value in working together for your contracting business, will we make a decision.
For further details, please contact us.