Umbrella Companies ??
27 January 2003, 01:32 PM
#1
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Does anyone use an Umbrella Company at all ?
I'm looking into the pros and cons of keeping the Ltd Co going or switching to an Umbrella Co.
Are they worth it and do they really max your take home income ?
Any opinions gratefully received.
I'm looking into the pros and cons of keeping the Ltd Co going or switching to an Umbrella Co.
Are they worth it and do they really max your take home income ?
Any opinions gratefully received.
27 January 2003, 02:13 PM
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inspires confidence - what's an umbrella company, then I'll tell you 
Contractors require a limited company to operate. the 2 avenues are to own and run your own ltd company or use an existing ltd company who's purpose is to take your invoiced monies, paye tax them, manage your expenses and pay you a net monthly income. they of course charge a small monthly fee for this and are usually run by large accountancy firms.
Contractors require a limited company to operate. the 2 avenues are to own and run your own ltd company or use an existing ltd company who's purpose is to take your invoiced monies, paye tax them, manage your expenses and pay you a net monthly income. they of course charge a small monthly fee for this and are usually run by large accountancy firms.
27 January 2003, 02:22 PM
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BL; if you don't know, then you can't really comment on this mate, as I need someone with experience of using one.
Fosters; do you use one ? At the mo, I'm using an accountant for my returns, but looking into switching to an umbrella. I don't find doing my own accounts that hard (or maybe I'm missing something! I'll know soon as it's my first return this year!) so not sure what they can offer ?
Fosters; do you use one ? At the mo, I'm using an accountant for my returns, but looking into switching to an umbrella. I don't find doing my own accounts that hard (or maybe I'm missing something! I'll know soon as it's my first return this year!
) so not sure what they can offer ?
27 January 2003, 02:34 PM
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I don't and haven't used an umbrella, but in the 7 years of being contract and the 12 of working alongside them, you pick up a few bits and bobs.
If you're sucked into IR35 then I would use an umbrella company, because the accounts are too simple and boring to manage on your own.
If you can evade IR35 or have non IR35 contracts alongside your main IR35 compliant contract, then get an accountant to manage your ltd company for you.
I've found personally that recommended normal (not contractor) accountants are better for contractors. a good one seems to know the pitfalls and tax breaks available to you more than the 200 'packed in like chickens' accountants at a contractor-specific accountancy firm.
To quote a personal example: I usually (pre IR35) took what money I wanted and the accountant, at the end of the year, sorted out dividend payments, dates, ACT, CT61s and MCT for me... until my contractor accountancy firm decided quantity was better than quality. the last year I was with them, they said you haven't declared any dividends (yes, you do all that for me) - you owe the IR 29K tax for directors loans. you'll get most of it back when you've paid the loans off. fecking great.
My new local family accountant has sorted things beautifully.
don't take anything for granted with these volume accountants!!!
If you're sucked into IR35 then I would use an umbrella company, because the accounts are too simple and boring to manage on your own.
If you can evade IR35 or have non IR35 contracts alongside your main IR35 compliant contract, then get an accountant to manage your ltd company for you.
I've found personally that recommended normal (not contractor) accountants are better for contractors. a good one seems to know the pitfalls and tax breaks available to you more than the 200 'packed in like chickens' accountants at a contractor-specific accountancy firm.
To quote a personal example: I usually (pre IR35) took what money I wanted and the accountant, at the end of the year, sorted out dividend payments, dates, ACT, CT61s and MCT for me... until my contractor accountancy firm decided quantity was better than quality. the last year I was with them, they said you haven't declared any dividends (yes, you do all that for me) - you owe the IR 29K tax for directors loans. you'll get most of it back when you've paid the loans off. fecking great.
My new local family accountant has sorted things beautifully.
don't take anything for granted with these volume accountants!!!
27 January 2003, 02:42 PM
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Ah.
I went with a personally recommended accountant and he seemed to know his stuff.
Like you said, he advised that I can take out what I need and then he'll sort out the payments at the end of the year and tot them up to see if I can take out any more or owe the company anything.
I went with a personally recommended accountant and he seemed to know his stuff.
Like you said, he advised that I can take out what I need and then he'll sort out the payments at the end of the year and tot them up to see if I can take out any more or owe the company anything.
27 January 2003, 06:09 PM
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Hi Devil, i'm a contractor myself but do the Ltd Co routine.
Have you tried http://www.contractoruk.co.uk
Have you tried http://www.contractoruk.co.uk
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