Why should I use an umbrella company
Aus Salespoint
If you decide you would like to work for yourself, regardless of whether you decide to call yourself a Sole Trader, a contractor, or a freelancer it is important that you work inside the laws of the nation. Accountancy may not be your thing, which means you can have problems determining exactly what you need to pay in tax. This really leaves you with two alternatives, you can act as your very own business and use an accountancy service, or work under an umbrella company. It is simpler to pay of these types of companies, rather than try and work out how much you owe the authorities.
You'll find that most agencies don't want to become involved in your tax affairs, so will prefer that you function as, or for, a limited company. This means they are quite willing to employ you with an [http://www.umbrella-company.net umbrella company, it doesn't mean you have to form one yourself. In case you aren't already associated with an umbrella company, speak with the company who are attempting to recruit you, as they as a rule have arrangements with the major umbrella companies. It is also an advantage to join a company they advise, since it smooths the payment procedure out.
If you want to find an umbrella calculator on your own, it's not that tough. You will see that nearly all online job sites promote them. Each one of them declaring that they can offer you the highest percentage of your hourly or daily rate because of their wonderful accounting system. Actually your realize that they are offering identical service. The differences you will see will primarily be limited to the size of the fee they take for handling your contract, and the features that they offer. If you check out their websites there is a pretty good chance of you seeing an umbrella calculator that can enable you to enter your rate and it will give you a figure of what you can expect to expect as take-home pay.
You must remember that this umbrella calculator can only present you with an estimated amount, but it's a figure you are able to compare with what another umbrella company will offer. They usually work on you having a standard tax code, and also the contract being IR 35 compliant, but they also do usually subtract their costs before providing the figures. Unfortunately they cannot see how much you'll save as a result of expenses, as that figure is not available, despite the fact that that is most companies selling feature.
You might think that your net income is a lot less using an umbrella company instead of your own limited company if you have seen the figures produced by the umbrella calculator. And when you see the fees that you have to pay the umbrella company, you might be shocked, but remember you will be paying an accountant a lot more. An umbrella company will be ideal for you as a contractor if you are looking for a simple life, and to make sure that you are paying the right amount of tax, and not going to get a major shock after self-assessment.
