Umbrella Company 

Each day we hear from contractors who were originally herded into umbrellas when they began their contracts, and now as established contractors, are looking for proper advice on whether Umbrella is the best choice longer term. Umbrella Company Contractor

Umbrella? - Choosing the Right Trading Route 

There are other trading options available to contractors besides umbrella -  own limited company, sole trader, partnership and limited liability partnership. For short term lower rate contracts, being an umbrella employee can be the right choice, but long term high earners this is probably not the case.

The facts are:

  • If much of your contract work is found via recruitment agencies agencies or direct with larger client companies then they may stipulate that you need to trade via a UK limited company of some sort - i.e. through your own limited company or as an umbrella employee.
  • HMRC are happy for contractors to run their own businesses so long as they properly consider whether tax rules such as IR35 and Income Shifting apply
  • Self-employed contractors usually get more credibility, income, status, experience

Umbrella Company Contractors Miss Out?

Our guides section includes useful background but the best way to understand fully is to call us now on 0800 121 6016 for a short chat to one of or accountants about your particular circumstances and future plans. We’ll give you uncomplicated advice on whether Virtue Guidesbeing an umbrella employee is right for you, or if one of the other Call 0800 121 6016 or 02476 713 720trading options might be better suited. You might be losing out on things like:-

  • Tax planning, salary and dividends - more earnings if you're genuinely not caught by IR35. More flexibility about when you draw business earnings, substantial NI and tax savings through proper pension planning.
  • VAT registration - cut costs by claiming back VAT on purchases or using the Flat Rate Scheme
  • Full expenses - As well as travel, allowable expenses would include computer equipment, mobile phone, internet costs, etc.
  • Flashing - your Managing Director business cards in nightclubs, at school reunions and at your work-shy brother-in-law.

Whatever trading route you choose, Virtue are experts in make running your own business straightforward and hassle-free. Put your details in our contact form or press some buttons and talk to one of our accountants on 0800 121 6016.

 

 

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