Umbrella Company : Benefits

Enjoying a more relaxed approach to your work could be an attractive prospect for a lot of people, and will enable you to enjoy more free time, which you could either spend boosting the amount of work you take on or relaxing with your friends and family. When money is the issue, you cannot afford to be living in a fantasy world. You need to know what your bottom line is in order to exceed expectations, and the umbrella companies are the ones who can give these projections to you.

Finding an umbrella company to help in this area is easy and there are many companies available online. It is very simple to set up as a contractor through an umbrella company. All that required is for a contractor to choose and join an umbrella company that they feel would be right for them.

Using an umbrella company provides significant benefits to the independent contractor and the agency. The contractor no longer has to worry about setting up and managing a company. He gets all of the same benefits as a regular employee while maintaining his flexibility as a contract worker. Further, he is allotted benefits priced to the entire umbrella workforce, rather than to a one-person company. This ultimately provides the contractor with access to benefits he might not otherwise be able to afford.

The major appeal of umbrella companies to contractors is not only the amount of time they save by handling PAYE, NICs, VAT returns, payroll issues and company accounts. They also shield all contractors who work for them from the effects of IR35 legislation. They have the technical expertise and knowledge to deliver a more precise idea of what your most tax efficient way to receive your earnings.

IR35 legislation is a bit of a grey area and there are no hard and fast rules. The most important thing to remember is that IR35 is your responsibility and this view is held by HMRC. This is why it is advisable to invest in an IR35 expert so that you can be prepared for any higher rates of taxation you may be facing.

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