I’m new here and just recently started doing some work here and there with agencies. Everything goes through an umbrella company. Could some of you guys, in English explain how this works please? Also would it be worthwhile starting a Ltd company and going that route with a bit of enthusiasm.
How long do you intend to pursue your agency career?
Would be for as long as it takes to get a permanent post with a decent income. I’ve been away from driving for 4 or 5 years and also looking at sitting my class 1 soon so I tight take good employers a while before they see me as experienced enough again.
PAY.
If you’re intending to get a ‘proper job’ on the back of your agency work, you’re probably better off being employed by the agency, tell agency you have a ‘proper job’, get your P45 from them and hand it over to new employer… job sorted.
UMBRELLA.
As predicted long ago, these so called ‘umbrella’ companies are screwing the drivers with huge tax bills and leaving many of them sweating like a Geordie in the job centre every time the postman posts a letter through their door.
LTD.
To make money as a Ltd Company you need to plan long term and run it as a business.
I work full time at the moment (not driving). I’m pretty suspicious of the umbrella companies cos it’s very ambiguous as to what they actually do, hence why I’m asking. I’d give running my own business a bloody good go but not sure if it would actually pay. Only options agency gave given is umbrella or Ltd. To be honest my gut tells me to stay well clear of umbrella. I don’t mind putting in the graft to reap the rewards of my own Ltd company.
You’ve basically answered your own question, as you ain’t gonna be agency long enough for you to go Ltd Co, and umbrella should be given a wide berth. As you state the agency are only giving you 2 options, I’d give them a wide berth and try elsewhere unless you can get option 3 … PAYE
On the other hand pierre, would becoming a Ltd Co be a worthwhile option long term and also get away from umbrellas at the same time in doing so…?
Yes long term it would but make sure you have a second income stream as hmrc are also going for ltd that don’t run any vehicles commercially. If you have one customer then you need to run a van basicly that’s,insured hire and reward. Or have at least 4 companies you can get regular work off
IMO becoming Ltd is only worthwhile for a minimum of a few years
Ive been advised by neighbour (a tax accountant) to avoid umbrella companies. He says it it being investigated how they operate and could leave the driver liable to hefty fines.
I haven’t come across any agencies recently that don’t use umbrella companies or say go Ltd. I don’t want to run into trouble with HMRC for wanting to work. I’m sure I ead somewhere that umbrella companies came about as agencies screwed up paying NI and/or PAYE on employees and got fined so they don’t go for PAYE now.
Last I worked for agencies there were no umbrella companies so I’m kinda at a stumbling block as what to go with
alix776:
Yes long term it would but make sure you have a second income stream as hmrc are also going for ltd that don’t run any vehicles commercially. If you have one customer then you need to run a van basicly that’s,insured hire and reward. Or have at least 4 companies you can get regular work off
What a crock of crap 
How come?
Eddie, to answer your original question of how an umbrella Co works have a look at the FAQ’s for PML accounting pmlaccounting.com/downloads/PML_ … ochure.pdf
peirre:
Eddie, to answer your original question of how an umbrella Co works have a look at the FAQ’s for PML accounting pmlaccounting.com/downloads/PML_ … ochure.pdf
PML don’t do umbrella companies. If you are with or where with PML you have your own Ltd company which they either create for you or you can bring to PML. It is your LTD company.
Not like GAIN or that where you are one director in a massive umbrella company.
Kenny I was generalising how umbrella Co’s work.
PML seem to follow the route that other “accounting” Co’s work, ie: they set up a Ltd Co for you, with you as the director holding 1 share, they administer all the deductions, invoicing & end of year accounts. These details/services are outline in their download which I linked to
So what’s the difference between PML and others?
What cuts do they take? What’s the pros and cons…and what’s your thoughts on these companies and your opinions…
Get an accountant that deals with Taxes , ask around for recommendations from people you know that are already Limited Companies, or call up a local one and get a consultation from them.
That should be the first choice if you are not able to get PAYE.
It’s not that difficult once it is up and running and depending on how much you do yourself on a week to week basis it shouldn’t be much over the year.
Get VAT registered on the Flat Rate Scheme and that is more money in your pocket.
Good Luck.
The work I’ve been doing with agency a lot all want you using umbrella now.
I shop around asking for PAYE then how much you charge each payment, what expenses can be claimed genuine. You can find that some will charge £15, £18, £20, £25 and £30 each payment you get. so you need to shop around or you lose out.
When you earn less then £10.00 an hour your expenses are only like £40 a week rubbish. You need to be on £10.00 an hour to earn more expenses for travel, food and clothes etc. Its a big con so I only look for jobs £10.00 an hour with the umbrella company with agency.
Also another thing agency only allow you a choice of who they like umbrella company’s. Why is that its commission for agency or there based in there office the same agency people just charging you for that service.
I only claim genuine expenses nothing more. So if there a tax enquire your cover for genuine expenses etc.
You could go self employed for the agency but they won’t allow this all part of there con. This is why there zero hours silly contracts.
I had one agency try to go behind my back and choose a umbrella company for me. I told them straight put my money back where it belongs I have chosen the umbrella from the list you have given me. There not allowed to do this privacy laws my money got sorted out soon as I mension this and the law.