Umbrella companies

tim_n

I have been offered a position being paid £130 per day, but the company cannot pay me directly, they want either me to register as a limited company or work with an umbrella company.

I've never heard of the term umbrella company though I believe its a way of being a middle man to take cash and pay me.

Does anyone know of any tax problems or recommend any companies to do the job for me (or get the best deal)

tim_n

Just noted you can't recommend companies - can anyone offer me their opinion on this one? it seems the best option so far for what I want/need:

http://www.charterhouseplc.com/limited-companies/fps-dividend/index.html

WHA

They sound very expensive - 5% of your invoice, 5% of your expenses, no doubt plus VAT. Based on your quoted daily rate, that's at least £1,500 per year for their fees.

AND they say you have to be outside IR35.

Well, the thing is that if you are outside IR35, you can do exactly the same with your own limited company, and there are plenty of accountancy firms who will help you run your own limited company for probably half that price.

Doesn't sound like a good deal to me at all.

tim_n

it's only a temporary solution (I hope) so it'll only be three months. I don't want to deal specifically with my own limited company for a whole year!

MickKnipfler

I use giant powerhouse (giantgroup.com I think). If you want to go with them, they do have a "recommend a friend" incentive that I'd willingly share 50/50. Don't do it just for that though....

steveh2001

I just posted a similar question - i was recommended http://www.safesolutions.co.uk/

I have signed up with them, but havent started the role yet, so no idea if there are any pitfalls yet. But £180 a week i take home £153 ish

tim_n

sounds pretty much like the solution I've been offered at the top - except that it was personally recommended for being quick and hassle free - no ideas about safesolutions as until you'd mentioned them I'd never heard of them = )

MickKnipfler

I went with Giant as they were recommended to me and I've always found them excellent. I haven't compared their prices though. The other thing you need to compare is the insurance cover they offer though.

tim_n

I've spoken to my local friendly neighbourhood accountant who's advised me that for a 3 month contract, if there is no hassle with a contractor 5% isn't an unreasonable (and probably cheap) alternative to doing it myself... I'm all for no hassle to be honest!

MickKnipfler

I agree. Ltd Co has got advantages but not for 3 months...

tim_n

well pm your ref. details MickNipfler - I'll be comparing the services so no promises - plus I've got to research them properly... No point wasting financial incentatives though!