One of the most frequently asked questions by contractors who are new to umbrella companies is about take home pay retention. The following article will provide you with a detailed explanation of the deductions you can expect to see to your pay when you register with an umbrella company.
Choosing an umbrella company can often seem daunting. There’s a lot of information online and hundreds of umbrella companies to choose from. Given that all compliant umbrella companies will pay you roughly the same (give or take a few pounds depending on their margin), how do you choose between them?
Mini umbrella company’s (MUC) are the latest type of tax avoidance schemes to target the temporary labour market. MUC’s, like other avoidance schemes, reduce the amount of tax you pay to HMRC and can pose a severe financial risk to anyone engaging with them.
On the 26th November, HMRC published a report entitled: Use of marketed tax avoidance schemes in the UK. The report discusses how the UK has seen a significant shift in the way promoters of tax avoidance schemes are targeting individuals, and the steps the government are taking to tackle tax avoidance.
If you’ve recently secured a new role, you may be given a couple of options for your preferred method of payroll. Most commonly, there are two options: being paid through the recruitment agency, or registering with an umbrella company. Our blog explains the key differences to consider when choosing how to get paid for your temporary assignments.
Since 6th April 2016, Supervision, Direction and Control (SDC) has restricted the tax relief that contractors working through an umbrella company are allowed to claim. Our blog explains what expenses you can claim through an umbrella company.
One of the benefits of being employed by an umbrella company is that your earnings are taxed before you are paid – so you don’t have to complete a tax return. However, you may need to complete one if you any have additional, untaxed income alongside your umbrella earnings.
Thousands of self-employed individuals are now facing significant tax bills as the government step up their efforts to reclaim underpaid tax via the controversial Loan Charge.
Whether you’re new to contracting or are a limited company director who may require an umbrella company for future assignments, understanding how an umbrella company works is vital when deciding which provider to use. There is a lot of information that you need to take on board, and we hope the following summary is useful.
Working via an umbrella company offers a no-risk payroll option for contract work, especially if you have never worked as a contractor before, you are caught by IR35, or you prefer a more hands-off approach with your finances. We’ve compiled a list of the benefits of using an umbrella company.
