Are you that lazy that you need an Umbrella?
November 9, 2011 | By Nimbus |
Your accountant in Brighton and Hove has decided to go head first into the blogging world with our first blog on umbrella companies.
An umbrella company, normally run by a firm of accountants, holds your contract and pays your through a payroll scheme, they also kindly repay some of your expenses you have incurred (how thoughtful). This is the same tax treatment as an employee, but the umbrella company/accountant charges you. Being in an umbrella company, apparently, helps with the IR35 substitution clause, but what about a reality check?
So, here you are in your umbrella company, paying tax as if you were an employee but not getting any of the perks. No holiday pay, no sick pay, no employer pension contribution and more importantly no annual staff Christmas party. However, with the new Agency Workers Regulations implemented on 1 October 2011, will you now be entitled to these benefit’s? It’s a grey area and it will be interesting to see how the legislation is interpreted. If you are going to get these benefits then why not become an employee with the job security and save on the accountant’s costs?
Our accountants at Nimbus have never understood why contractors or freelancers use an umbrella company. We can only assume that they think running their own limited company is too much hard work? Well we are here to tell you otherwise.
Most qualified accountants should take care of everything for you, that’s right, there is no extra work for you. An accountant, qualified of course, can take care of everything from the formation of your own company and all the statutory requirements.
Now for the sales pitch, please skip if you are happy with your current accountant!
Nimbus Accounting are qualified accountants that specialise in contractor/freelance clients and enjoy making their life easier, whilst increasing their monthly take home pay. We can take care of everything from forming a company, registering with HMRC for Corporation Tax, VAT, PAYE, dealing with Companies House, helping you open a bank account, setting you up with free accounting software, preparing your payroll, sending you dividend certificates and most importantly keeping your tax bill down. And the best part, all of this for only £99 + VAT per month.
If you would like one of our accountants to calculate how much better off you would be operating your own limited company, please email us for a free wealth check.