New or Experienced Contractors
Find value in PAYE Umbrellas
Just Started Contracting?
When you first start out it can sometimes be overwhelming trying to decide how you want to organise your finances and get paid as a contractor. Indeed any quick search for ‘contractor tax’ will bring up hundreds of companies all offering various solutions to how to get the most out of your money. Over the years these have included Managed Service Companies, Employee Benefit Trusts, Offshore Trusts and various other solutions that have later been investigated and proven costly for all involved. But really all you need to know is that when it comes to managing your earnings there are two routes to take that are guaranteed to keep you on the right side of HMRC – setting up a limited company, or joining an umbrella company. Both of these have the advantage of years of use by hundreds of thousands of contractors and the certainty that they will not get you into trouble when it comes to IR35 or tax avoidance. So which one is right for someone who is new to contracting?
Limited or Umbrella?
Here at Hamilton Bradbury we recognise that there will be times when a Limited Company is a better fit for a contractor than an umbrella company. For contractors who have been in the business for a long time and are earning more than £500 a day there are some advantages to Limited Companies in terms of taxation. But at the same time there is a lot more admin that goes into running a limited company and that means a lot more paperwork every day and a lot more time dealing with an accountant. Also Limited Companies you will run the risk of falling foul of IR35.
Certainly for contractors earning less than £500 a day this extra hassle is not worth it and it is far easier and more tax efficient to join an PAYE umbrella. Umbrella companies have been round for a long time and have always been popular with contractors, but since 2007 the interest in umbrella companies has rocketed. That’s because from 2007 onwards umbrella companies were seen as different from composite structures and single person companies and new legislation affirmed their compliance and that they would not raise the ire of HMRC. In a nutshell umbrella companies work within PAYE and the contractor pays PAYE and NIC’s the same as any other employee, whilst also being able to claim back many business expenses. They also have the added advantage of requiring no paperwork whatsoever (save for a solitary timesheet at the end of the week or month) and the contractor does not, therefore, have to deal with accountants, the taxman or even customers who haven’t paid their invoices. Everything is handled on their behalf by the umbrella company.
If you’ve been contracting for a while then the chances are you already know the advantages switching to an umbrella company can bring. A high percentage of the contractors who come to us are people who have been contracting for a long time and love the opportunities and freedom that come with the contracting lifestyle but who are fed up with all the tedious admin and paperwork that comes with running their own limited company, dealing with accountants (and HMRC) and chasing down clients for unpaid invoices.
Making Life Easier
We set up Hamilton Bradbury for exactly that reason, because we understand that contracting can be a lot more rewarding when you are free to spend all of your time either working or finding new contracts. Not only does our umbrella company offer you the lowest fees on the market, it also allows you to start enjoying your working day once again. By giving you employee status and the security and rights of an employment contract we don’t just give you an easy way to process your timesheet and statutory benefits such as sick leave, holiday pay and maternity leave, you also get free insurance (public and professional) and a massive backroom staff and support staff to take care of all the day to day running of your business and to handle everything from PAYE and NIC’s to chasing issuing invoices and chasing payments.
Start Benefiting Straight Away
Once you decide to make the change we can have your umbrella company status up and running straight away. It only takes a few minutes and it’s free to do (and its just as free and easy to leave as well, though you probably won’t want to!) Once you’ve joined you can start concentrating immediately on what you do best, making money and finding new jobs, whilst we handle everything else. And while you’re doing that we’ll start working right away in the background, ensuring you’re retaining the highest levels of your own income as well as making sure you’re utilising your expenses claims properly. We’ll also chase down any money owed to you and we’ll sort your PAYE and NIC for you. Best of all we guarantee that you’ll get your money the same day as we do, with no exceptions.
Is Hamilton Bradbury Right for You?
Our umbrella company solution is used by thousands of contractors across all kinds of contracting sectors, from Professionals to IT and from Oil and Gas industry contractors to medical and media contractors, all of whom came to us looking for excellent service combined with a hassle free way of working and the security of a large and experienced back room support service. We believe that we the most experienced and dedicated support staff in the industry and we’re proud of the service we provide to our contractors.