There are many routes one can take if they want to have the flexibility of how they work. One of those ways is the path of the freelancer or contractor. These are the ones that can go from contract to contract or company to company and can have a more flexible lifestyle. For example, they can take time off between working arrangements or continue to work as much as they can handle.
Even as a contractor, there are some options that you need to consider. Once you go down that route, there are a lot of items that you need to handle, much akin to running your own operations or business.
You need to take a lot of administrative work and fees if you choose to become a solo operation. You may even consider incorporating in some capacity as a way to protect yourself, but then everything has to be handled by you. Your taxes, payroll, insurance, deductions, and pretty much everything else will need to be taken by yourself.
The other alternative to working as a contractor is to also partner up with an umbrella company. This term is a company that will handle all the administrative hassle and should set you up on a PAYE (Pay As You Earn) scheme.
There’s no need for an accountant ever, as everything is handled by the umbrella company you are working with. Just take a mental note that you want to save everything still because if the tax authorities have any questions, they will always default to going to the contractor and not to the umbrella company.
The liability of everything still falls onto the contractor with everything, and the umbrella company is there only as that support for administrative issues.
How do I pick the right umbrella company?
There are multiple umbrella company options out there, and it’s essential to compare umbrella companies. Take your time with it, as having a complete umbrella companies comparison will help arm you with exactly what you need to have.
You want to see all the various options, what the fees cover, and how much administrative hassle they do really take off your hands. Having an umbrella company may be the right option for you. Still, without comparing umbrella-type companies, you may find yourself in a situation that may have more headaches than benefits in the long run.
Doing a proper umbrella company compare task can also take a long time, as there are a lot of companies that will be going into your umbrella companies comparison.
You have to contact each one individually and then start listing down their benefits versus their fees and trying to see in your matrix which one was the right one for you when you finished, and there’s no longer a need to compare the umbrella companies. So, again, this is something that can take weeks to even a few months, depending on how long the process can take.
Another factor to factor in is that you may not know all the questions that need to be asked in your umbrella companies comparison. You may look at one set of benefits and completely miss out on other benefits.
You may not even take the time to compare umbrella companies and pick one quickly after spending so much time with just the first few companies. After all, you’re a contractor, and you want to have a focus on your current contracted position.
No one wants to be investing that much time on administrative tasks and also find someone to take care of those administrative tasks. The initial work starts to pile up and appears as a secondary job that doesn’t technically even pay. Sometimes the process can drag on for longer than the contract work itself.
Where can I go for assistance?
At Comparison Contractor, we handle all the heavy lifting and research into finding the right umbrella company for you. Our focus is to build out an umbrella company compare system that helps to facilitate your search for your next umbrella company.
We extensively review the changing parameters in the industry and add that to our recommendation when you reach out to us for umbrella companies comparison. The industry is constantly changing, and as it changes, we help only compare the umbrella companies that are also evolving correctly.
That means recommending those companies that are IR35 compliant, so you don’t have to spend money on additional insurance while at the same time also showcasing a variety of umbrella companies that offer a fixed payment schema.
There are some umbrella companies out there that we try to minimise in our umbrella companies comparison. They charge their fee on an ever-increasing scale, regardless of your contracts or pay increase. This element can be disheartening and detrimental as you start to see your pay go down while working on a long-term contract.
You can always come back and report to us if there’s an umbrella company that’s offering one plan but then switches out to a different type of plan, as our goal and mission is always to offer up the best types of umbrella companies for the job.
You can efficiently utilise our system and consultants to visualise your pay statement, depending on the selection of your umbrella company. Then, when you answer a few simple questions, we’ll reach out to you to offer our unbiased selection.
We’ve done all the work to compare umbrella companies for you, and you don’t have to handle the tedious task of making your own personal umbrella companies comparison.
Is an umbrella company right for me?
If you’re just starting out with your contractor career and lifestyle, it’s an excellent decision initially. It allows for you, as a contractor, to focus on working your best for each client, as well as put your energy into finding more clients.
All the paperwork to keep you compliant with HMRC is handed over, and you just need to keep your receipts with you. In addition, working with an umbrella company will allow you to be taxed better as an employee, as you submit your timesheets to the umbrella company, instead of having to create tedious invoices that have their own sets of rules and standards.
You should always consider and weigh your options, but you won’t have to make the umbrella companies comparison while you think of which direction to take. Even if you aren’t fully set on which route you want to take, it would still benefit you to work with professionals in the area that compare umbrella companies for you. This way, you can have a snapshot directly in front of you to make the most informed decision possible.
There are a significant number of benefits to working with an umbrella company. Still, without that proper umbrella company compare exercise being done, it’s possible to find umbrella companies that may not be as honest or can be a bit unscrupulous in their offering.
The benefit of the lack of information out there at times is that it would benefit you to work with someone who has vetted the major players in the industry for you.
Find and compare the best UK umbrella companies today and maximise your take home pay by visiting: https://comparisoncontractor.com/umbrella/