Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Using an Umbrella Company when Contracting

By Aimee Wells Subscribe to RSS | February 16th 2012 | Views:

Over the years, many IT contractors and people that work in other industries where workers are hired on similar terms have elected to start their own limited company in an effort to minimise their end-of-year tax bill and to maximise their weekly take-home pay. However, more and more people are realising that this is not the only option that is open to them and that there are alternatives that enable them to save a lot of money without having to do any paperwork themselves.

Setting up as a sole trader is one option that involves less paperwork than forming a limited company but it can still eat into your spare time considerably and if the tax office decides that you are essentially employed on a full-time basis by the company for whom you are contracting, the time spent on keeping your own accounts will have been a complete waste. An option that more and more people are considering these days involves registering as an employee of what is known as an umbrella company. Such an organisation allows you to work for whomever you wish whilst leaving them to deal with the accounts and tax returns.

For those that worry that this type of arrangement will mean that they earn less, it will be comforting to know that it is still possible to claim for all the usual business expenses when working for such a firm. There is obviously a charge for the administrative services that they provide but in many cases, this may work out to be the same or less than a sole trader or director of a limited company would pay an accountant to look over his or her books before submitting them at the end of every year.

Many firms that provide this type of service take care of everything that a contractor would normally have to do, such as raising invoices, making payments to a tax efficient pension scheme and handling national insurance contributions. Another benefit that does not occur to people until they need to apply for a loan or mortgage is that they are considered as an employee of the company that takes care of their paperwork so there is no need to worry about having to submit several years’ worth of business accounts in order to be approved.

Aimee Wells - About Author:
Umbrella Company
Phone Number : 8443577353
Email Address :

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Management Articles Subscribe to RSS

Importance of mail and fulfilment services offered in UK for the improvement of the development in the company
Published by Diego Hall on April 17th 2012 | Business
the best option to make further profit is to hand over your business to the mail and fulfilment serv...
Things to Consider while location shopping for the best option to establish a company in UAE
Published by Andy Cena on April 27th 2012 | Management
Those wishing to establish a company in UAE have their task cutout for them. Quality infrastructure,...
Only company in India for packing and shifting services you can rely
Published by Ankita Gupta on January 5th 2012 | Business
Thanks for visiting. All of us offer services on the loading and unloading, warehousing services, ho...
Online company registration
Published by Amber Dorsch on February 27th 2012 | Management
There are many benefits of these online company formation and company registration. But the main con...
Flat Contractor expenses can keep your company afloat
Published by Crowin Smith on February 13th 2012 | Business
The business world is influenced by the changing tides of the global economy which can be brutal to ...
Could Quality Management Systems be useful within your company? > Please base article around this
Published by Julia Roger on June 18th 2012 | Business
This is why we take the time to sit down and talk to our clients, to ensure that our quality managem...
Choose a Denver dumpster company that meets your requirements.
Published by Colin Steven on July 3rd 2012 | Business
Keep in mind that the way you load your dumpster depends on the type of dumpster you have obtained o...
Techniques for medical equipment manufacturers Through Supercharge your provide you with company lately!
Published by Samuel Willie on May 29th 2012 | Business
Advancing produce thread control might be a section of concern through a large amount of insurance c...
What an accountancy company can offer a business.
Published by Johnny Harman on March 15th 2012 | Management
If you own a portion of a business or manage a company there are a number of extra tasks which you w...
What it takes to set up a company in China
Published by Barker Hicks on April 28th 2012 | Business
When foreign investors want to set up company in China it is advisable for them to review their inve...
About my company and the services we provide
Published by Seolncr on February 28th 2012 | Business
Do you want to promote your business on the internet market? My company is one of the best online ma...
Custom Umbrellas are usually used to promote a company name
Published by Sodablues on December 21st 2011 | Business
Though there is a broad variety of Custom Umbrellas accessible in the market in present days incorpo...
Why you should choose RSC for your company’s Risk Assessments?
Published by Risksafetyconsultants on April 12th 2012 | Business
Health and safety consultancy Sheffield consists of experts having years of experience in the field....
Austin home relocating company
Published by Austin Larck on April 18th 2012 | Business
Our Austin home moving companies have expert in shifting antique furniture and pianos and musical in...
How to set up a limited company in UK
Published by Nrainman on December 6th 2011 | Management
Limited company formation is the most popular format of company formation. There are certain laws fo...
Name badges nourishes the company’s industrial
Published by Ema Sis on March 27th 2012 | Business

A name badge at the moment are the greater feature to research a business along with it should b...
What are the Legal Requirements of Singapore company registration?
Published by Andrews Thomas on January 25th 2012 | Business
There are some easy requirements that the business owners should meet for Singapore company registra...
Great service by a reliable packing and moving company
Published by Ankita Gupta on January 12th 2012 | Business
Packing and moving has become regular part of our life. We are constantly moving from one city to an...
IVR survey strengthen the relations between customer and company
Published by Snooozy on March 9th 2012 | Business
In the time of huge competition every company wants to have strong relations with its customers. Thu...
Arizona property management company excels in offering high standard services within reasonable price
Published by Rajeevdubey on June 20th 2012 | Management
Properties matters should be handled wisely. Be it related to renting your home or sell/purchase of ...