Contractor Umbrella Companies.. reccomendations??

[M@H]

Hi Chaps..

well after 4 months in the wilderness it looks like I've found a job

..sadly over 3 hours from home and a contract position, so I'll be living out of a suitcase in the week

Anyway.. suffice to say I'm a newbie to contracting so am after any good advice on Umbrella companies (Parasol and Contractor Umbrella have been mentioned to me in the past) and contracts in general (eg. what abour notice periods and stuff?) would be greatly appreciated.

Many thanks in advance,
Matt.

[Plotloss]

Are you considering contracting for a while or is it just this job?

If its the former, umbrella companies arent worth it IMHO.

[M@H]

Hiya,

its just a Job.. 12 month contract. I'm not planning on becoming a lifer at it, its just the first decent offer I've had, and for the sake of £55 a month an Umbrella seemed the best way to go..??? no?

Cheers
Matt.

[Plotloss]

Fixed rate, regardless of hours?

Thats a new one on me I have to say, all the shylocks I looked at wanted around 8%.

This was some time ago though.

[M@H]

Yep. £55 a month all in.. including processing expenses. Seemed ok to me.. I agree though there are a load about who want 6-8% for the sake of giving you life insurance and illness cover on top.

[obiwonkeyblokey]

I have worked from an agency point of view with Giant for over 4 years. I would recomend them www.giantgroup.com there are others such as parasol as well, but some only pay monthly etc.

[JohnSW20]

Hi Mat
I work for Charterhouse Group International the Uk's largest provider of limited company structures for contractors. If you need any advise without the sales pitch I'd be happy to help. You usally have 3 options own limited company of the shelf, invoicing vehical where you remain self employed or a fully managed solution.
E-mail if you want any info or advise.

Cheers

John

[Double Play]

Brooksons, but make sure you are IR35 aware.

Going the own-business route is not fun, but if it does continue for a few years you'll know more than you did before!!!

[UpTheIron]

Matt,

First thing to establish - is your new contract caught by IR35?

If not, IMHO the small hassle of running your own ltd company (an hour a week if that) will save you a significant sum.

[Eric Mc]

If your contract IS caught under IR35, you will still pay less tax than a normal employee would on the same "salary" levels.

Just remember that.

IR 35 is bad, but being an employee is still worse.

>> Edited by Eric Mc on Sunday 30th January 09:47

[M@H]

Hi Chaps,

Thanks for the later responses.. I thought this thread was dead and buried. In the end I went with Giant as they have one of these "Dividend" schemes running. I'll probably set up my own Ltd Co if I stick with contracting for the longer term however at the moment the lack of hassle from them doing the paperwork for a 70% take-home against Gross seems OK.

Thanks for the thoughts though

Cheers
Matt

[Eric Mc]

I wonder have they passed this "scheme" under Gordon's nose for srutineering? This is now required for all "legal" tax avoidance schemes.

>> Edited by Eric Mc on Monday 7th February 09:24

[M@H]

Eric Mc said:

I wonder have they passed this "scheme" under Gordon's nose for srutineering? This is now required for all "legal" tax avoidance schemes. >> Edited by Eric Mc on Monday 7th February 09:24

Apparently so.. its got something to do with contractual wordings and stuff..(!?) Either way they insure you against a Tax Investigation anyway for £50k of legal/accountancy fees, and pay any Tax owed in the event of a failed investigation so I'm trusting its all above board (fingersfirmlycrossed)

[Eric Mc]

Only "Apparently"?

I'd find out for sure.

[M@H]

Eric Mc said:

Only "Apparently"? I'd find out for sure.

..my contract is listed with them as "IR35 Friendly" by their administrators but either way you are quite right.. there are a few things I'd like them to confirm by letter just in case.

Cheers
Matt

[obiwonkeyblokey]

Theyve have S**t hot accountants working for them who are very good and maximising and benefits you can take. I have never had any complaints about them from and contractors ive sent their way, which included a few close friends. You should be fine.

Disclaimer.....any advice you take from pistonheads should be ........

[Alex]

Eric Mc said:

If your contract IS caught under IR35, you will still pay less tax than a normal employee would on the same "salary" levels.

No, you pay more, as you have to pay employer's NI which a permie doesn't pay.

[Eric Mc]

I knew someone would raise this point.

Surely, the company paying your company would negotiate with you and build that into their costing when agreeing the terms of the contract with you. In order for you to achieve a comparable "Net" salary, they would have to set the relevant "Gross" level to pay you.
If they were paying you as a salaried employee, they would obviously be tasked with calculating the various tax and NI amounts and paying the Inland Revenue.

All that's happened with IR35 is that instead of them doing the donkey work for Gordon, your company does it instead. AND, you can claim some additional costs against your own company's tax and PAYE which an ordinary employee can't. So surely, for any comparable "Net into Hand" amount, Gordon gets correspondingly less than he would from you as a straight employee.

It doesn't really matter who pays the cheque to the Inland Revenue, what does matter is the level of that cheque.