Umbrella companies for the self-employed

wonkytechy

Hi thereIm fortunate to have attained a selfemployed opportunity for which I can either set up a limited company in my own right or use an umbrella company. As the contract is short term, it makes more sense to use an umbrella company who will handle my pay.
This is all very very new to me - I have blurb about a number of umbrella companies but have no clue of the pitfalls or any experience about what Im about to do. I did talk to an accountant before deciding on the umbrella route.
Any tips gratefully received

InsideInsurance

If you are using an umbrella or Ltd company then it is not "self employed" as you'll be an employee of the umbrella or Ltd depending on which route you go.

The only real considerations with umbrellas is their fees, their timeliness and what shade of grey they are (and how comfortable you are with that). Personally I'd never go with one of these offshoring umbrellas that promise 95% fee retention but I know some who've been using schemes for a few years and other than the irregularity of payment have had no problems (though of cause little protection if anything did go wrong)

Brassedoff

Inside Insurance is right. I work through an umbrella company, you will find it the most tax efficient way if you work in certain industries, or in a certain way.

The tax efficient benefits providing you can stick to the rules are very good. You should see an Accountant to ensure you are right in the reasons for setting it up and running it.

liampowell

It depends on your circumstances as a limited company director you will have much more control over your money.

... i had a good link but im not allowed to post it...

contractoruk have an article called
choosing_limited_or_umbrella.html
which is well worth a read

paddyrg

The tax advantages aren't what they used to be, and HMRC may decide for you whether you're employed or self employed or contract is inside out outside of ir35. In my industry certain roles are not accepted as self employed for instance, no matter what the individual says!

If it's short term only then you may as well umbrella it and get paid more or less what you'd get as a permie for the company, of you're going to have multiple clients and a bit more control of your world then your own close company (Ltd) may become cost effective