If you’re an independent contractor or considering the switch to freelancing, an Umbrella Company might be the most sensible solution for you. Here’s a quick rundown of the benefits of working through a professional Umbrella Payroll Company.
- It’s not a long term commitment.
Signing up to an Umbrella company should be fairly simple and quick, and the same goes for leaving. Make sure the Umbrella Company you choose does not tie you into any long-term monthly contracts. A reputable and professional Umbrella like 1st Contact Umbrella will only charge you a fee on actual timesheets submitted. If you’re between contracts, you simply don’t pay them anything.
- Great for first-time contractors
An Umbrella company allows those just starting out to “test the waters” of being an independent contractor. Some people also use the services of an Umbrella Company for the short-term contracts between permanent roles. Should you find that contracting is for you, you could at a later stage, armed with experience and plenty of information, open a Limited Company.
- Maternity and sick leave pay
When you partner with a reputable and reliable company like 1st Contact Umbrella, you are able to claim full statutory employment rights, including maternity, paternity, sick pay & holiday pay. So while you enjoy the independence of being a contractor you also have the safety net of an employee.
- Less admin and paperwork
One of the really great things about working through an Umbrella company is that you have minimal administrative input. Once you’ve done the work, you submit an online timesheet. The Umbrella Company then handle the administration on your behalf; invoicing, collecting of payments from your agency/client, and paying of your tax and NI contributions to HMRC. Nothing could be simpler!
- Your tax affairs are legal and up to date
Having a professional and experienced umbrella company deal with all your tax and administrative work ensures your legal and tax compliance. Why spend hours of your time trying to figure out your taxes, when an accountant can do it for you? With 1st Contact, you also enjoy Professional, Public and Employer’s Indemnity Insurance at no extra cost.
- Claim back on your business expenses
As an independent contractor you are permitted by HMRC to claim certain expenses. Your umbrella company will process these expenses for you and it’s up to you to keep all your relevant receipts.
- A tax partner you can rely on
In a rapidly changing and heavily regulated marketplace, it helps to have a partner who understands all the ins and outs of the complicated UK tax system and can give you up-to-date information and sound advice.
Visit www.1stcontact-umbrella.com to find out more about their services or register online.