If you start a limited company, you'll have many issues. You'll have to hire more folks for managing company affairs. At the same time, you'll be company director wholly accountable for company affairs with the HMRC. On the other hand, an umbrella company can come as a breeze of unpolluted air leaving you with only the work to focus.
When you join an umbrella company, you become a PAYE worker of that company. At the same time, you will retain all the benefits of being a contractor. You won't only enjoy the suppleness that's one of the charms of contracting, but you will also get many employment benefits after changing into a PAYE employee. The umbrella company you join will make sure that it handles all your payroll processing along with tax deductions and claims leaving you with no executive responsibilities.
By joining an umbrella company, you become a worker; therefore , IR35 cannot apply in your case. This will give you many benefits including tax subsidies. You will become legally tax-efficient and you will have many tax related benefits only due to IR35 not catching you.
An umbrella company will provide you complete peace of mind taking away all of the contractual and statutory obligations. It will also take away all your tax obligations. Since you are an employee, the employer will take your tax, which is umbrella company in this case. You won't have to hire anybody for fiscal and tax guidance since umbrella company will render its services for that matter.
One of the major advantages and attractions of joining an umbrella company can be summed into work rights. Since many folks fail to enjoy these rights when working as contractors, they fail to enjoy the normal rights that all the other working people enjoy. The umbrella company gives you a worker status providing you all these rights as a consequence of the new standing of your contract with the company.
About the Author:
Greg Dickson is chief of promoting for the Bedouin Group, one of the premiere providers of umbrella company solutions for contractors and self employed staff. Bedouin Money also provides contractor mortgages and contractor pensions.
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