Umbrella company or self employed?

tgirl · 7 June 2011 at 12:45PM

I’m wondering if you could help me. I’m working as a contractor via an umbrella company at the moment. There have been a number of delays due to the time taken for the invoice from the umbrella company to reach the agency etc. The agency has said that I could speed up the process by dropping the umbrella company and having them pay me directly tax free. This would mean that I have to do my own taxes and I’m wondering how much I would have to pay in tax. How much would an accountant charge? Is this a bad idea?

Any IT contractors out there please offer advice :-)

T

easyhost · 7 June 2011 at 12:55PM

tgirl wrote: »

I’m wondering if you could help me. I’m working as a contractor via an umbrella company at the moment. There have been a number of delays due to the time taken for the invoice from the umbrella company to reach the agency etc. The agency has said that I could speed up the process by dropping the umbrella company and having them pay me directly tax free. This would mean that I have to do my own taxes and I’m wondering how much I would have to pay in tax. How much would an accountant charge? Is this a bad idea?

Any IT contractors out there please offer advice :-)

T

i suggest you contact a local accountant (most offer a free initial consultation) and then explain to them as they are the best to advise about sub contracting and the taxes and processes.

SteProud · 9 June 2011 at 12:15PM

I work for an umbrella and a specialist contractor accountant so I'm not impartial but is the agency suggesting you set up your own limited company?

paddyrg · 9 June 2011 at 3:13PM

If you're contracting, you will need an accountant if you want your own limited company. The tax advantages are likely negligible these days, but you will be more in control. In the olden days you could *rent* a limited company by the month just for invoicing purposes *sigh*.