We’re rounding up some umbrella company benefits to show you why so many contractors are making the switch.
If you’re a contractor working with several clients and agencies, you’ll know that managing your workload can be tough.
As well as delivering a consistent service to your end-clients, you have to worry about things like accounting, insurance, tax and NI, incorporation. In many cases, contractors end up operating inefficiently, paying too much tax and wasting their time.
With recent IR35 changes, many contractors are now realising the benefits of working with an umbrella company and making the switch.
Below, we’ve rounded up some of the biggest umbrella company benefits…
Perhaps one of the biggest benefits of working with an umbrella company is that all of your invoicing, administration, payment chasing and payroll processing is carried out for you. All you need to do is supply your umbrella company with a timesheet, and they’ll do the rest, so you can focus on providing a great service to your clients and relax when you’re off work.
As a skilled worker, you might sign a contract to work with a client for six months and then “go dry” for a month with no work. An umbrella company is suitable for contractors who work for any contract length, as you can pay per timesheet rather than entering a contract.
Incorporating your own business and appointing an accountant to manage your books can be the most tax-efficient option in some circumstances, but it can also be expensive when you have an unpredictable income. Working with a reliable umbrella contracting company such as Evolve Contract Services is an affordable option for contractors at all salary rates.
Pay as You Earn
Rather than submitting annual tax returns and Self Assessments, your umbrella company will pay you after making necessary deductions for tax and National Insurance contributions on a Pay As You Earn (PAYE) basis. No more worrying about saving up for your annual tax bill; everything is covered and every penny that hits your bank account is yours to spend!
As a self-employed contractor, you might need to take out a personal insurance policy before you can win contracts. Through an umbrella company like Evolve Contract Services, you’ll benefit from a comprehensive £25 million insurance package included for free, including £10 million Employers’ Liability, £10 million Public Liability, and £5 million Professional Indemnity.
Fast and convenient
Unlike setting up a business, you can register to work with the best umbrella companies online and be running on the same day, view your pay information on a dedicated portal 24 hours a day, seven days a week, and receive notifications via email and SMS when your pay is due. There are no setup or exit fees, meaning more freedom than company incorporation.
As an employee of an umbrella company, you’ll benefit from employment rights, HR support, holiday pay, reduced administration, and employee benefits schemes, offering you perks and discounts. These benefits often outweigh the rewards of working under a limited company.
Umbrella companies often offer other services such as limited company incorporation, accounting, and more, and as part of the service, you’ll be given access to a specialist to help you make the best financial decisions as a contractor. From pensions and investments to self-employed mortgages, having everything you need under one roof is an added bonus.
There you have it – some of the biggest umbrella company benefits. If you are ready to make the leap, reach out to Evolve Contract Services today for a free, no-obligation chat, and we’ll see how we can best assist your needs as a contractor.