I work for an agency atm and was wondering if these umbrella company’s are all they are cracked up to be, I’ve heard some horror stories about them not paying ya tax n stuff
In my own (limited) opinion, there are only 2 ways to work on Agency.
PAYE or Limited Company (set up by yourself), anything else is just going to cause grief later on down the line.
steelgoon:
In my own (limited) opinion, there are only 2 ways to work on Agency.PAYE or Limited Company (set up by yourself), anything else is just going to cause grief later on down the line.
Completely agree with the above.
Back in 2005 to 2007 while doing agency work, I was using nova ended up owing the taxman £400.
If I had to return to agency I would insist on paye.
I have done a lot of work researching umbrella companies as I have been asked to insure their professional liabilities in the past.
I wasn’t comfortable with the model for a number of reasons and recently hmrc have been taking a long hard look at them too.
In essence I can’t see anything they offer that setting up your own Ltd Co doesn’t and has the potential to cost you quite a bit of money.
It takes 5 minutes online and £15 to set your own company up and then you pay 20% corporation tax on any income after expenses, pay yourself a wage of around £8k so you do not pay tax or NI but hmrc still credit your NI account as if you are and then pay yourself the rest of the money in dividends.
There are recent rule changes on dividend payments but it is still the most efficient route tax wise I think.
Note though that you are not entitiled to holiday as you around be as a PAYE tell employee as you employ yourself, not the agency.
Has advantages though being one step removed from the agent as well though.
Most important thing of you go that route is such 20% of all income straight into a savings account and don’t touch it.
You won’t need it all when the hmrc want their slice as your accountant (and you do need an accountant) will knock off various expenses etc so you’ll have a bit of a bonus at the tax year end.
If you are not disciplined enough to not touch the money put aside for tax don’t go that route - it will end in expensive tears…
Any good recommendations for an umbrella company
geoffwales:
Any good recommendations for an umbrella company
Ive found Fulton’s to be the best of the bunch, they’ve not failed me yet
fultonumbrellas.com/sport/al … blue-navy/
Remember if you insist on being umbrella ( and theres no reason to be as explained above )
That the taxman can go back 8 years , and longer if he suspects fraud , so you may not see error of your ways til 2023 or something !!
Yep its just trying to find a decent one, ive heard alot of stories
Just do it yourself. Why bother bother with an umbrella?..
Because i also work somewhere else paye and dont want the hassle of sorting tax and ni out
boredwivdrivin:
Remember if you insist on being umbrella ( and theres no reason to be as explained above )
That the taxman can go back 8 years , and longer if he suspects fraud , so you may not see error of your ways til 2023 or something !!
You also have to remember that umbrella companies are not working around tax laws, it’s the hgv driver that is.
Umbrella companies are legit in the eyes of the law, and have plenty of clients that can use them without attracting the attention of the tax man.
So does anyone know a good one please
geoffwales:
So does anyone know a good one please
There aren’t any. They’re all scamming you, and the tax-man (by enticing you into claiming expenses you aren’t actually entitled to be claming) - of course when the tax man catches up… it’s YOU that gets ■■■■■■ for it, not them. Avoid them all, do not touch with a ■■■■■■ stick.
If you want the easy life, stick to PAYE. If you want the extra money for being self-employed, go down the Ltd Co, VAT registered route, and do it yourself. If you can’t be arsed / dont know how, put £10/week aside to pay for a decent accountant at the end of the year to do it for you - even that would be a ■■■■ sight cheaper than most umbrella.
If someone can point me in the direction of an ethical umbrella company that doesn’t charge ridiculous fees, does everything by the book, and doesn’t leave you screwed over - im all ears.
HTH.
Appreciatted
most umbrella companies now set you up as a ltd company in anycase, so just go ltd yourself.
Found one called parasol, which seem good