Umbrella company in the UK
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Thanks digital man, good advice & an interesting article (got my vote!) I didn't realise that there would be a big difference in the take home pay! :(( I've a family friend who is an accountant, so think he will be my next call. - I'll blame you, for me harassing him! :laugh: However I'm only signing up for a 6 month contact, so is setting up a limited company worth it? What if I don't like it, and want a directly employed job again? I've then got to close the company down & do all the admin. So what sorts of sums difference are we talking based on a contact rate? Hundreds or Thousands?
Alan Beasley wrote:
I didn't realise that there would be a big difference in the take home pay!
It isn't huge but it is worth it: umbrella companies are there to make a profit. Who from? You, of course!
Alan Beasley wrote:
I've a family friend who is an accountant, so think he will be my next call
NO!!! Why would you want a friend to know the ins and outs of your income? Besides, you want to use a reasonable sized accountant that the inland revenue work with regularly (so are less likely to question what they do) and that will allow you to give their office as your registered address. Sire they cost, but it is deductible!
Alan Beasley wrote:
However I'm only signing up for a 6 month contact, so is setting up a limited company worth it?
Absolutely: if you don't like it. close the company, declare yourself redundant and pay yourself out! You'll also need to register for VAT. All worth it.
Alan Beasley wrote:
So what sorts of sums difference are we talking based on a contact rate?
That will depend upon what you do and where and for whom. City of London pay the best - check on JobServe[^] or the like and read my other articles on contracting - might help.
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." Red Adair. nils illegitimus carborundum me, me, me
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Alan Beasley wrote:
I didn't realise that there would be a big difference in the take home pay!
It isn't huge but it is worth it: umbrella companies are there to make a profit. Who from? You, of course!
Alan Beasley wrote:
I've a family friend who is an accountant, so think he will be my next call
NO!!! Why would you want a friend to know the ins and outs of your income? Besides, you want to use a reasonable sized accountant that the inland revenue work with regularly (so are less likely to question what they do) and that will allow you to give their office as your registered address. Sire they cost, but it is deductible!
Alan Beasley wrote:
However I'm only signing up for a 6 month contact, so is setting up a limited company worth it?
Absolutely: if you don't like it. close the company, declare yourself redundant and pay yourself out! You'll also need to register for VAT. All worth it.
Alan Beasley wrote:
So what sorts of sums difference are we talking based on a contact rate?
That will depend upon what you do and where and for whom. City of London pay the best - check on JobServe[^] or the like and read my other articles on contracting - might help.
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." Red Adair. nils illegitimus carborundum me, me, me
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Hi People, Like I suspect many of you are, I'm stepping out of the safe environment of directly employed. Into the shark infested waters of contracting. And as Krusty the clown would say: "I couldn't help it, they drove a dump truck load of money up to my house!" But obviously with becoming the devil's spawn, I need an umbrella company to work through. So can anyone recommend a good one, as well as ones to steer clear of? I'm currently looking at "Liberty Bishop", & "Giant". But other than judging them on the quality of their website, they don't really tell you much... Any advice would be really appreciated! :-\ Alan
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NO NO NO!!! Do not use an Umbrealla Company. Set up your own limited company, it gives you more freedom. And do not use Liberty Bishop, I've used them in the past and lets just say I wasn't very pleased with the service. Look for a decent accountant and do it yourself, trust me. I've gone down both routes and the Limited Company is the best. :)
"If you can't explain it simply, you don't understand it well enough" ~ Albert Einstein "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." ~ Paul Neal "Red" Adair
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No worries. If you need any other advice I'm sure the guys here are always happy to help. Making the initial leap can seem a bit daunting at first, and indeed it is a different way of working, with more things to keep track of (receipts, invoices, VAT payments, PAYE payments etc etc). But when you get used to it, it's a piece of piss. Good luck :)
"If you can't explain it simply, you don't understand it well enough" ~ Albert Einstein "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." ~ Paul Neal "Red" Adair
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I purposely linked you to the page that showed the most flowery ones. ;P Not seen you in the lounge of late?
pompeyboy3 wrote:
I purposely linked you to the page that showed the most flowery ones
I figured as much!!! :laugh:
pompeyboy3 wrote:
Not seen you in the lounge of late?
No, unfortunately I have had other things to do like working, & sadly my mother dying of cancer. (She has passed on now, & will suffer no more...) But I will be back soon to annoy you!!! ;P
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pompeyboy3 wrote:
I purposely linked you to the page that showed the most flowery ones
I figured as much!!! :laugh:
pompeyboy3 wrote:
Not seen you in the lounge of late?
No, unfortunately I have had other things to do like working, & sadly my mother dying of cancer. (She has passed on now, & will suffer no more...) But I will be back soon to annoy you!!! ;P
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Hi People, Like I suspect many of you are, I'm stepping out of the safe environment of directly employed. Into the shark infested waters of contracting. And as Krusty the clown would say: "I couldn't help it, they drove a dump truck load of money up to my house!" But obviously with becoming the devil's spawn, I need an umbrella company to work through. So can anyone recommend a good one, as well as ones to steer clear of? I'm currently looking at "Liberty Bishop", & "Giant". But other than judging them on the quality of their website, they don't really tell you much... Any advice would be really appreciated! :-\ Alan
If you must use an umbrella company then I recommend Parasol[^]. I know a lot of people who use them and they are very happy, and they don't charge a lot of money. One friend of mine used to use Giant but he didn't think their service was up to much. Long term then a Ltd company is the way to go - for your first 6 month contract? Not sure - do a lot of research on the ins and outs of it all before you make a decision. If you do go Ltd then make sure your accountant knows the ropes - many years ago a long-term contractor friend of mine was *hammered* by the tax man because his accountant screwed up. Cost him thousands and was very messy.
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Sorry to hear it. Cancer took my Dad a couple of months back and like you I am glad he is suffering know more.
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If you must use an umbrella company then I recommend Parasol[^]. I know a lot of people who use them and they are very happy, and they don't charge a lot of money. One friend of mine used to use Giant but he didn't think their service was up to much. Long term then a Ltd company is the way to go - for your first 6 month contract? Not sure - do a lot of research on the ins and outs of it all before you make a decision. If you do go Ltd then make sure your accountant knows the ropes - many years ago a long-term contractor friend of mine was *hammered* by the tax man because his accountant screwed up. Cost him thousands and was very messy.
Thanks Rob I wasn't even impressed with Giant's website. So crossed them off the list straight away! I was a contractor many years ago when IR35 first came in. I used Drole at the time, but wanted to know the current state of play was... And all the advice is to go limited, & is what I think I will do! :) Cheers for all the advice!
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No worries. If you need any other advice I'm sure the guys here are always happy to help. Making the initial leap can seem a bit daunting at first, and indeed it is a different way of working, with more things to keep track of (receipts, invoices, VAT payments, PAYE payments etc etc). But when you get used to it, it's a piece of piss. Good luck :)
"If you can't explain it simply, you don't understand it well enough" ~ Albert Einstein "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." ~ Paul Neal "Red" Adair
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Hi People, Like I suspect many of you are, I'm stepping out of the safe environment of directly employed. Into the shark infested waters of contracting. And as Krusty the clown would say: "I couldn't help it, they drove a dump truck load of money up to my house!" But obviously with becoming the devil's spawn, I need an umbrella company to work through. So can anyone recommend a good one, as well as ones to steer clear of? I'm currently looking at "Liberty Bishop", & "Giant". But other than judging them on the quality of their website, they don't really tell you much... Any advice would be really appreciated! :-\ Alan
-
Hi People, Like I suspect many of you are, I'm stepping out of the safe environment of directly employed. Into the shark infested waters of contracting. And as Krusty the clown would say: "I couldn't help it, they drove a dump truck load of money up to my house!" But obviously with becoming the devil's spawn, I need an umbrella company to work through. So can anyone recommend a good one, as well as ones to steer clear of? I'm currently looking at "Liberty Bishop", & "Giant". But other than judging them on the quality of their website, they don't really tell you much... Any advice would be really appreciated! :-\ Alan
Another piece of advice (from experience) is to get a good accounting package that will handle the VAT, PAYE, payables, receivables, etc. This will cut down your accounting costs and take away a lot of the admin headache. I would not recommend Sage - it's ubiquitous in the UK and some accountants encourage you to get it as it suits them, but Sage's marketing skills are much better than their product.
It’s not because things are difficult that we do not dare, it’s because we do not dare that things are difficult. ~Seneca
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Hi People, Like I suspect many of you are, I'm stepping out of the safe environment of directly employed. Into the shark infested waters of contracting. And as Krusty the clown would say: "I couldn't help it, they drove a dump truck load of money up to my house!" But obviously with becoming the devil's spawn, I need an umbrella company to work through. So can anyone recommend a good one, as well as ones to steer clear of? I'm currently looking at "Liberty Bishop", & "Giant". But other than judging them on the quality of their website, they don't really tell you much... Any advice would be really appreciated! :-\ Alan
I am the only one thinking about zombies when reading Umbrella company? Too much Resident Evil I think..
-- Si dos montan un caballo, uno debe ir detrás.
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Another piece of advice (from experience) is to get a good accounting package that will handle the VAT, PAYE, payables, receivables, etc. This will cut down your accounting costs and take away a lot of the admin headache. I would not recommend Sage - it's ubiquitous in the UK and some accountants encourage you to get it as it suits them, but Sage's marketing skills are much better than their product.
It’s not because things are difficult that we do not dare, it’s because we do not dare that things are difficult. ~Seneca
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I am the only one thinking about zombies when reading Umbrella company? Too much Resident Evil I think..
-- Si dos montan un caballo, uno debe ir detrás.