Best way to set things right

[Mug27]

Hi everyone,

Partly due to reading some of the posts on this forum, partly due to a change at work and mostly due to the increasing feeling of dread/nausea I've decided to ask advice from the community here.

I got my first contract a year or so ago and went for one of these keep "80% of your contract we'll loan your wages back to you umbrella" schemes. I hold my hands up I'm old enough to know it was too good to be true, but I thought for 6 months it'd get me set up after a year or so living off savings. Anyway the contract has been extended I'm still doing it and my employer is changing agencies and the new agency won't touch my umbrella. I'm seeing this as an opportunity to get my house in order and want to make the right decisions from here on in.

I have a couple of questions that I'd be really grateful for people's experience on:

1. As a contractor what is the way to go to be completely ok with HMRC?
2. Are there any umbrella companies that provide this?
3. Is it wise to proactively contact HMRC? From looking at the forum and across the net I know that HMRC are writing letters to people on these types of schemes requesting payment.

Thanks for your help

[northernladuk]

I have a couple of questions that I'd be really grateful for people's experience on:

1. As a contractor what is the way to go to be completely ok with HMRC?

Go with a reputable umbrella that treats you as an employee and follows tax rules for employees. There are quite a few around but I would recommend this lot.

PAYE Umbrella Companies for UK Contractors | Contractor Umbrella Company

The owner posts on here and is one of our most helpful posters. She also makes a great cup of tea but does shirk a little when it's her turn to brew up.

2. Are there any umbrella companies that provide this?

See above.

3. Is it wise to proactively contact HMRC? From looking at the forum and across the net I know that HMRC are writing letters to people on these types of schemes requesting payment.

If you have read the forums as you say you will see there is a whole part of the forum dedicated to this. It can be found in the link below. I would suggest from the little information you have give you spend a lot of time in that area and speak to a raft of people in exactly your situation. Plenty of advice and discussion in there.

HMRC Scheme Enquiries

[cojak]

Hi Mug27,

Good to see that you've come asking for help. Go to the Umbrella sub-forum. We have a number of specialists or there who will help you. In this instance I'm not going to advise you to go Ltd as I think you've been a bit traumatised and probably need a bit of reassurance. Speak to them BEFORE contacting HMRC, they will advise the best course of action.

Lisa from ContractorUmbrella is a good egg, as is Claire from In-Touch, and the chaps from Nixon Williams and Crunch. I've even heard that Giant aren't too bad.

Have a look here: Setting up your IT contractor company - Limited, Umbrella or PAYE? :: Contractor UK

Take your time to have a look around and don't be pushed into anything. Pushy salesmen are alarm bells...

[northernladuk]

Hi Mug27,

Good to see that you've come asking for help. Go to the Umbrella sub-forum. We have a number of specialists or there who will help you. In this instance I'm not going to advise you to go Ltd as I think you've been a bit traumatised and probably need a bit of reassurance. Speak to them BEFORE contacting HMRC, they will advise the best course of action.

Lisa from ContractorUmbrella is a good egg, as is Claire from In-Touch, and the chaps from Nixon Williams and Crunch. I've even heard that Giant aren't too bad.

Have a look here: Setting up your IT contractor company - Limited, Umbrella or PAYE? :: Contractor UK

Take your time to have a look around and don't be pushed into anything. Pushy salesmen are alarm bells...

I thought Claire left or is leaving InTouch... Craig is still there making coffees and answering the phones though.