An umbrella company is the ideal solution for contractors who do not wish to set up their own limited company or become self employed.
For contractors seeking a way of working which allows them to work on several contracts without administration, then an umbrella company is the answer. You can say goodbye to such administrative tasks as invoices, expenses, timesheets, tax calculations, contracts and filing which would take up your time of you were operating your own limited company.
These are not the only benefits of working via an umbrella company as many also offer extra benefits which can be personally tailored to your requirements such as health cover and contractor pensions. They can also work with you to reduce your tax liability while also offering Employer and Public liability cover in case of any legal challenges to services provided.
When choosing an umbrella company, it is essential to be well informed about the processes. All umbrellas must adhere to HMRC guidelines. Crystal Umbrella adheres to their benchmark scale rate for expense allowances. This is of benefit to our customers as it reduces the risk of HMRC investigation resulting from the use of an artificially high and unrealistic dispensation.
Contractors or freelancers using an umbrella company effectively become an employee of that umbrella while retaining the freedom to choose the contracts they accept and negotiating their own rates and working terms and conditions. In other words, an umbrella company provides contractors with the opportunity to retain autonomy while providing tax reductions and options for additional benefits.
Scott Illingworth is Director of Service Delivery at Crystal Umbrella.
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Image: Under My Umbrella by Ladybird Raq
