If you’ve decided that running your own business as a limited company you might consider working through an Umbrella Company. An umbrella company is a separate company that acts as an employer for contractors working on contracts. An Umbrella company is also an intermediary between the contractor and their end client or agency.
Once you have chosen an umbrella company there are the typical first steps you will take as an umbrella company employee:
- The umbrella company will sign a contract with the recruitment agency.
- You will sign an employment contract with the umbrella company.
- Each week you will submit your timesheet details to your umbrella company.
- The client confirms your worked hours.
- The umbrella will submit an invoice to your agency on your behalf.
- The agency will then pay the umbrella for the invoiced sum.
- The Umbrella Company processes the payment and any chargeable expenses and deducts the necessary tax and NI contributions. An Umbrella company provides a payroll service to it’s employees and pays it’s employees a salary after deductions.
- You will receive your money less tax, NI contributions and the Umbrella services margin.
Umbrella employment solution is ideal for contractors and freelancers who are planning on working shorter assignments or are just starting out. Our service and help in your Umbrella Company takes care of all the necessary tax and NI calculations and payments on your behalf. Umbrella employment solution is perfect if you want a hassle free way to get paid. We handle all of the administration associated with contracting so that you can concentrate on the contracting yourself!
Let us help you to reduce the tax that you pay.
If you need reliable business advice for your new or existing business please contact us now.