I know this a break in tradition from this site but I seek some serious advice and information from you regarding going contracting. My particular situation is for the past x months I’ve been winding up my sole trader operations, though just recently an agency approached me with a possibility of going contracting. To be honest its was not something I was even considering and was actually gearing up for a permanent job.
Now I have a problem, an interview for a contract role and not a real clue how to be a contractor, if I should succeed. I did a bit of research online and came up with more questions than answers. Firstly, I do not want my own limited company, so does this mean I HAVE to use the services of an Umbrella company?
One of the major things I do not understand is if you have an umbrella company that assigns a salary of £800's and then the remainder is paid in dividends, how can that be legal? To me isn’t that just evading tax? And b) on payment day will i just get the salary amount or will i get the salary and dividend together? And c) Can the dividend be lost or diminished in anyway and so when withdrawn can I lose out?
Typically, in the real world how long does it actually take to get paid if the agency will only pay by the month? I have heard stories of agencies taking forever to pay and of course Umbrella companies pass on this delay. Are agencies that bad?
I've could across a company called RMS that claims to pay your salary portion before they received payment from the agency, though there’s no dividends, still expenses but therefore more tax (less net). Does anyone have any experiences of RMS Consults? Is such an arrangement less risky that going the dividend route?
Can someone please recommend a good Umbrella company for First Timers like me that provides the complete service, with honest advice, good support, Bullet proof insurance cover (PI, Liability and the other one), and acceptable fees? What is an acceptable fee per week anyway?
In this day and age, unbiased honesty seems to be a rare quality. Ultimately if I cant find a Umbrella that doesn’t **ss me about or doesn’t behave like double glazing salesmen then I’m not going to take the plunge, nor will other first timers either. Is there any one out there???
I really would appreciate your advice.
Thank you.
Ps. is “parasol” any good?
Now I have a problem, an interview for a contract role and not a real clue how to be a contractor, if I should succeed. I did a bit of research online and came up with more questions than answers. Firstly, I do not want my own limited company, so does this mean I HAVE to use the services of an Umbrella company?
One of the major things I do not understand is if you have an umbrella company that assigns a salary of £800's and then the remainder is paid in dividends, how can that be legal? To me isn’t that just evading tax? And b) on payment day will i just get the salary amount or will i get the salary and dividend together? And c) Can the dividend be lost or diminished in anyway and so when withdrawn can I lose out?
Typically, in the real world how long does it actually take to get paid if the agency will only pay by the month? I have heard stories of agencies taking forever to pay and of course Umbrella companies pass on this delay. Are agencies that bad?
I've could across a company called RMS that claims to pay your salary portion before they received payment from the agency, though there’s no dividends, still expenses but therefore more tax (less net). Does anyone have any experiences of RMS Consults? Is such an arrangement less risky that going the dividend route?
Can someone please recommend a good Umbrella company for First Timers like me that provides the complete service, with honest advice, good support, Bullet proof insurance cover (PI, Liability and the other one), and acceptable fees? What is an acceptable fee per week anyway?
In this day and age, unbiased honesty seems to be a rare quality. Ultimately if I cant find a Umbrella that doesn’t **ss me about or doesn’t behave like double glazing salesmen then I’m not going to take the plunge, nor will other first timers either. Is there any one out there???
I really would appreciate your advice.
Thank you.
Ps. is “parasol” any good?
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