Jump to content

Question for IT Contractors about Umbrella Companies


LoveItIfWeBeatU
 Share

Recommended Posts

Guest thefishman

i use atlantic umbrella, fairly cheap and sort me expenses etc out, ps where u starting? ive just finished a contract and looking,

Link to post
Share on other sites

Set up your own ltd company, it is piss easy to do, and a decent accountant will not cost you that much.

 

This. I really cannot see the point of letting some blank-faced umbrella company leech off your earnings, when you can take care of it all yourself as Brummie suggests. Wish I had done so back in 2005 when I was working self-employed, tbh. Got taken to the frigging cleaners by the umbrella company I had chosen.

Link to post
Share on other sites

Thanks for the replies. I thought I'd go with an Umbrella company due to the very tight time scales (I've got to have it in place by Monday) and the fact that it is my first contract. If contracting works out for me in the longer term I'll look at setting up my own Ltd Company but this first contract is 3 months to start with.

 

I've been given a list of Umbrella companies which included Orange Genie, Atlantic Umbrella and Giant by the agency I got the job through. I noticed on the Giant website it doesn't list the fees they charge. I'll have to give them a ring.

Link to post
Share on other sites

DON'T USE GIANT, they are useless and their fee's are ridiculous

Thanks for that. I guess I'm looking at Orange Genie now then. What are normal, non-ridiculous fees? Orange Genie charge £16.82 a week for a 20% Taxpayer and £11.95 a week for a 40% taxpayer. Is that OK?

Link to post
Share on other sites

BE VERY CAREFUL NEAR UMBRELLA COMPANIES - make sure you're paying PAYE

 

The Revenue effectively banned some types of these a couple of years back Umbrella Company.   From our Accountant in 2008:

 

A managed service company who operate PAYE. If operated legally it would be no more than a payroll bureaux that can offer no tax benefit than any other PAYE employer. Some are running expense scams. It remains to be seen if this continues. There remains some debate as to whether these types of Managed Service Company are covered by the new rules. However, given that neither worker or agency can really know if they are operating lawfully (and there is plain evidence that many have not done so in the past) there is no protection against the third party liability for these companies debts should they go bust. Steering clear is probably the most sensible thing.

 

Composite Company

A managed service company who themselves run large numbers of other limited companies from which temp workers are paid in dividends. Illegal from April 6 2007.

Managed Service company (MSC)

 The term used by the Government in the legislation to describe the above.

Personal Service Company (PSC)

Now the only viable vehicle other than direct PAYE. This is defined as a company in which the individual worker has financial and operational control. In practice they should be a director and majority shareholder. This is the ‘normal’ model used by ‘Ltd’ temps up to 1999.

Managed Personal Service Company

Now being touted by many of the former composite providers affected by the new legislation. This format simply will not work, as the element of control required by the temporary worker is absent. Its should be noted that the HMRC does not licence or validate any such provider.

 

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...