Umbrella Companies

priyascalculator

Hi all,

I may be starting to contract next month for the first time. I understand what umbrella companies do, but which one to choose?
I have been recommended three...not sure if i can put their names here?

Any recommendations?

Thank you.

InsideInsurance

Are you intending to just do contracting for a short time or a few years? What sort of day rate are you looking at?

Umbrellas are easy to use but a ltd company is normally more tax efficient unless you are on low rates. I'd only really consider an umbrella if you are entry level or only doing it for a short while and so Ltd is more hassle than its worth

priyascalculator

£80 a day so entry level i guess. and will be for 5 months initially.
I was thinking to set up as a limited but wasnt sure if i could with all paperwork. ?

Two4Tuesday

All proper non-offshore umbrella companies should work out exactly the same with regard to claiming expenses and taxation. The main differences will be in:
(a) the fee or margin they take. This can vary between 5% of your gross contract rate and £30 a week
(b) How easy it is to access any online portal to submit timesheets and claim expenses, upload receipts etc.

I wouldn't touch offshore umbrella companies with a bargepole.

InsideInsurance

priyascalculator wrote: »

I was thinking to set up as a limited but wasnt sure if i could with all paperwork. ?

Most appoint an accountant who will do all the paperwork for you in terms of forming, paye, vat, returns etc.

Its generally not cost effective to get them to do your invoicing but then most agencies (who are the ones you actually invoice anyway) have timesheeting and invoicing systems and therefore you dont need to raise them yourself either.

Given the day rate and duration it may well not be worth the time of a Ltd but could be worth a quick chat to an accountant who specialises in contractors for advice and most offer a free half hour or so.