I may be going contracting, and Im not sure which umbrella company to use.

I dont fully understand this IR35 business and its implications which probably doesnt help either!

Anyone use an umbrella company? And if so which one?

I called prosperity4 and the figures they gave didnt sound that great, and taking 8% of your gross salary for their services is a lot.

 

I frequently use a company umbrella.

 

not that sort

 

same category as oeic's?

james

 

Try FPS on the Isle of Man. www.fpsgroup.com

I have contracted on and off since about '98 and have always used them.
They are well established and have always paid out on time etc.
I last freelanced about 18 months ago so am out of touch with their rates so give them a bell and get an info pack off them!

 

Petem95, I have used an unbrella company previously for some contract work I did. I used this company:-
http://www.brookson.co.uk/webpages/about.php
It was very easy, you get the benefits you would do if running your own limited company (like being able to claim expenses, take minimum salary and receive the bulk via dividend payments etc) but you don't have to worry about any of the paperwork. Usually they will have a standard contract which will be "IR35-proof". They should submit it to independent tax consultants for their opinion to guard against future action by the Inland Revenue. Of course you pay a fee to umbrella companies for their services but it takes the hassle out of it.

Depending on how long you will be going contracting, the precise nature of the work, your personal circumstances and preferences it may be more financially advantageous to go limited company.

For example if are you married and your partner doesn't work then they could be made company secretary and draw a salary which attracts less tax than you.

Make sure you do some research on IR35, there is tons of information out there about it. There are criteria the Inland Revenue apply to try and determine whether someone is subject to IR35. For example, does the contract permit the "right of substitution". In other words could you nominate someone else to do the work in your place? If you can't then they will say you are deemed to be employed by that company and therefore liable to IR35.

Do you use your own tools and equipment? If you use your own PC then that would be preferable than using the company's IT equipment.

There are lots of criteria like that, go do some research.

HTH
BIJ

 

Hi mate,

i use Giant, saves me about £70 a week in tax. had no problems in 6months..


cheers


wez

 

Have a google for prosperity4 there is "interesting" stuff about them.

I use http://www.nolongerlimited.com, they have always paid on time.

 

Thanks, I'll look into all the ones recommended.

Ive called prosperity4 and parasolIT so far, and parasol sound the better of the 2, but theres not much in it.