Getting a contract for a particular project
is a very exciting time for all types of contractors. No matter how appealing
the deal may be, it brings some stress and pressure along with it. For example,
you have to mange timesheets, employees’ salaries, and administration. And
above all, the possibility of being caught up in the IR35 sections act. Whether
you are a freelancer or a first time contractor, you can concentrate on your
project when using the services provided by umbrella companies.
When you are receiving the security of the umbrella
company services, you are freeing yourself from liabilities. All the
responsibilities of administration, accountancy, and taxation will be taken
care of on a daily basis. Though you are the owner of your company, you will be
paid as an employee, which would receive after deducting your taxes that you
are liable to pay from your income. This eliminates the danger of excluding the
IR35 rules.
Moreover, you will experience peace of mind
from keeping yourself posted about the taxation and employment rules. This is
very useful considering the fact that laws for contractors and freelancers in
the UK change every year. Therefore, ensure that the umbrella companies operate
with the laws of the UK when selecting one for your project.
