When might you need the services of an umbrella company?

Monday, 21 November 2011 09:34

If you have recently become a contractor, you might find you require the services of an umbrella company. While it is not a legal obligation to work with such a company, it can have many benefits for you by saving you time and hassle.

The life of a contractor can be an extremely fulfilling experience. You might have the luxury of being able to pick and choose the jobs you take on, while you also get to immerse yourself in the type of work you most enjoy and at which you excel.

If there is a downside, it is the thought of who will take care of your paperwork and administrative duties, which previously are likely to have been taken care of by your employer and their payroll department.

This is when you might need an umbrella service. Such a company will take over responsibility for calculating your tax and national insurance contributions for each contract you take on.

Every time you start a new assignment, your umbrella company will contact the recruitment business or client to set up the payment process, meaning you only have to worry about being paid by one company. The umbrella company will also help you chase any overdue payments from recruitment businesses or clients

Furthermore, as an employee of the umbrella company, you are entitled to the normal employment benefits.

Best of all, such a company may even be able to boost your take-home pay by claiming tax relief on your allowable expenses.

Furthermore, you are an employee of the umbrella company, meaning that the IR35 legislation is not a concern.

As you can see, there are multiple reasons why you might need the services of an umbrella company – so why not take advantage of these?

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