Contractor Umbrella Company
Setting up a limited company and operating in business on your own account is not appropriate for everyone. If you have a short term contract, or don't want the responsibility that running a business entails, then using an umbrella company is the best option for handling your taxes and pay.
A contractor umbrella company (or ‘brolly company’) treats freelance contractors as employees of the contractor umbrella company. Your client, or agent, enters into a contract with the contractor umbrella company for your services, and you enter into an over-arching employment contract with the contractor umbrella company. A PAYE Umbrella company treats all your income as salary. For more information for first time umbrella contractors, read on.
A contractor umbrella company is your employer, whilst you work on a series of temporary engagements. Instead of having the responsibility of running your own business you can simply work via an umbrella company.
Who is suited to a contractor umbrella company?
An umbrella service is a good solution for you if...
- you are a new contractor starting contracting for the first time
- running a Ltd company is inapprporiate – eg. you are an undischarged bankrupt, or just don't see yourself as a businessman
- you are looking for a quick and easy solution – up and running same day
- you are looking to return to permanent employment, or on a short-term contract
Still unsure if umbrella service is best for you? Read the benefits of the contractor umbrella service here.
What are the benefits of the contractor umbrella company?
The main benefit of a contractor umbrella service, is that it avoids the time and trouble of running your own company. After a simple set up, the contractor completes timesheets and expenses and forwards to the contractor umbrella company.
You have the knowledge that your earnings are paid directly into your bank account and documents are sent to you explaining how the payment is calculated. No need to be involved with running a spreadsheet, VAT returns, payroll matters, company accounts, taxation, etc.
For short term contractors, a further advantage is not having the process of forming a company and then arranging for it to be dissolved.
Lastly, a big plus of working through an umbrella company is that you get the benefits of an employee; maternity pay, sick pay and holiday pay.
The main benefit of a contractor umbrella service, is that it avoids the time and trouble of running your own company. After a simple set up, the contractor completes timesheets and expenses and forwards to the contractor umbrella company.
What makes Orange & Gold umbrella service different?
There are hundreds of umbrella companies for contractors. Here, we’ve summarised why you should choose the O&G umbrella service:
- Experience. Orange & Gold have been helping contractors for over 15 years. We know and understand contractor umbrella services and will ensure you receive smooth, reliable service. Read our first time umbrella service guide for more info.
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Professional. You are dealing with experienced contractor accountants, regulated by ACCA.
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Fixed, low cost per week.
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Massive dispensations. Don’t be fooled by umbrella companies that offer massive dispensations – we don’t. Phone us to understand current HMRC thinking and activity regarding 'dispensations'.
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Compliant. Our team of qualified accountants ensure that our service is 100% compliant. This gives you peace of mind that you will not be caught by any tax legislation.
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Fast. We can have you up and running with our contractor umbrella within 24 hours.
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Service levels. Our service level agreements ensure that you always receive the best possible service. We guarantee to answer emails on the same working day and phone calls within 3 rings. Most importantly, we pay you immediately we receive the funds without delay.
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Comprehensive. You get £2m professional indemnity insurance plus £5m public liability insurance plus £10m employers liability insurance. You get 24/7 access to your own portal and an on-line calculator to calculate your take-home.
For more reasons to choose the O&G umbrella, read on.
Massive dispensations. Don’t be fooled by umbrella companies that offer massive dispensations – we don’t . This is an area of tax avoidance that HMRC know about and will attack.
How does Orange & Gold contractor umbrella work?
When you start work on your new contract, you will need to complete your timesheets for your client to sign. You will also need to keep track of your expenses. We can advise you on what expenses you can claim and how to do this. After these have been agreed, fax the timesheets and expense forms through to O&G. You will be able to keep track of these on your own contractor portal.
There’s no need for you to produce any other paperwork. Orange & Gold will produce an invoice and collect payment from your client or agency. We will pay you a salary and advise you by text message every time.
Umbrella contracting is very straight forward and gives contractors a quick and easy way to work. Read on to find out more about contracting using Orange & Gold umbrella.
Next steps
Phone us straight away on 0845 272 4009 to speak to one of the expert umbrella contractor support team.