Umbrella company questions

[PhilAtBFCA]

And it's certainly not cheaper to run a 1 man Ltd company band.

Hi,

Certainly not ?

Umbrella = £1200 a year according to your figures incl PI.

Ltd Co= From £540 a year + say £400 cost of PI = £940

Both of these before tax deductions.

You will earn more inside and outside of IR35 in a Limited Co if you are VAT registered.

Certainly not ?

But dont just go Ltd for the money, you really do need to want to run your own business, IMHO.

Phil

[mglover]

Free Umbrella Company

Hi All

Springboard Umbrella announced yesterday that it is offering it's full umbrella service for free.
www.springboardumbrella.co.uk

[Hex]

So how do they make their money? I'd be very very suspicious of someone offering me a service like this for nothing unless I understood what they were getting from me that allowed them to do it free.

[ADRIANL]

It's a free market, and anyone can offer whatever service they like and contractors are free to take up any service, at their own risk. However, for what its worth, my observations are:
1. To the extent that this company can only operate at a loss it will necessarily be effectively insolvent- (even if supposedly supported by other reserves). On that basis it would not get accreditation from the AEMC or other reputable umbrella regulators due its inherent riskiness.
2. The company is a subsidiary of a recruitment agency - maybe enough said - and therefore you can see an angle.
3. Also as a subsidiary it will be easy to "let the company go" if it runs into trouble without affecting its supposedly profitable holding company.
4. Maybe recruiters should stick to recruiting and let professional accountants deal with tax and accounting.