Norla EBT Loan Scheme

[TykeMerc]

And that is my point. They are not more convenient. Part of the Umbrella FUD is that running your own LTD co is more difficult or time consuming.

Umbrella was more convenient to me.

Timesheet and expenses every week, cash appears in personal account, tax all taken care of, hassle free as far as I was concerned which suited me at the time.

Running a Ltd is a bit more work.

Of course some people don't have the option of a Ltd, they might have a bad credit record or be barred from being a Director as two obvious reasons.

[prozak]

Umbrella company: Enter timesheet and expense details on line.
Get paid
Downside: Pay is less than if you were outside IR35 and running your own Limited Company

Limited Company: Register Limited Company
Set up company bank account
Raise invoice each month or week and record the sale in a sales ledger (on a spreadsheet or using accounting software etc)
Record every company purchase and expense in a purchase ledger or cash book (as above)
Chase for payment of invoice
Record receipt of payments and receipts and make sure that your recorded balance equals your bank balance
Possibly make PAYE payments
Prepare and submit VAT returns
Ensure that you manage your money so that you have funds available for corporation tax and VAT as and when required.
Ensure that, if you draw dividends, each contract that you take up is outside IR35
etc. etc.
Good contractor accountants have made much of this easier with intelligent spreadsheets and software but it is still ultimately your responsibility
Upside - your take home pay will be higher

A list of tasks that might take 30 minutes a week if you aren't very good at it to start with.

Who here would turn down 10-20k a year for 30 minutes work a week?

[LisaContractorUmbrella]

A list of tasks that might take 30 minutes a week if you aren't very good at it to start with.

Who here would turn down 10-20k a year for 30 minutes work a week?

10-20K? Inside IR35?

[LisaContractorUmbrella]

This is part of the FUD. Umbrella's are less convenient and easy than a LTD company. You have a middle man who can make mistakes so you have to check they haven't. And when they have it takes more time.

The risk in my opinion for people's hard earned cash is handing it over to HMRC when they don't need to. Where is your risk? They can go LTD co and have a small risk of being in IR35 and having to pay some taxes..... OR they can just hand it straight over to HMRC up front.... hmmmm.. hard choice.

There is not a small risk of being inside IR35 at all; there may be a small risk of being caught if you draw dividends when you know that you are actually a deemed employee but that is a different matter


"In summary, if you are ready to be responsible for running your own company, as well as sourcing and negotiating your next contract/renewal, setting up your own Limited Company is ideal for you.

If you simply do not have the time or energy to do all the above yourself, let an Umbrella Company assist with managing your financial affairs. It really is the hassle-free option to make your life as a contractor just that little bit easier."

I'll join your umbrella if you source and negotiate my next and all future contracts.

Do you really tell your contractors that they are now a FTE for the umbrella and don't need to worry about finding another contract?

Brilliant.... I am in ! Job for life regardless of how obscure my skill is or what demand there is in the market.

I am flattered Prozac - you must have spent ages on our website over the last few days. Actually all umbrella companies now have to act as employer to the people who work for them; this includes paying SSP, SMP, SPP etc. Oh and yes we do offer to help source a new contract before the old one ends and no we don't charge. Call me touchy but you would appear to have a bit of any issue with umbrella companies - any particular reason other than you don't like paying tax?

[prozak]

I am flattered Prozac - you must have spent ages on our website over the last few days.

Nope. Just went straight to the summary of LTD v Umbrella. I am sure there are more choice pieces I could pick at if I read your whole site.

I don't have an issue with umbrella companys at all, which I have already said. You provide a service to people who want to use you.

I found your FUD amusing and you took exception I think to me calling it FUD. But FUD it is and FUD it remains.

[prozak]

"In addition to this, you will also need to pay 6 months corporation tax in advance at the start of the second year of your company trading."

This is news to me. Thaks for informing me.


That whle LTD v Umbrella is full of FUD. Factual? Mostly. But FUD usually is. It is the way it is presented that makes it FUD.

[LisaContractorUmbrella]

"In addition to this, you will also need to pay 6 months corporation tax in advance at the start of the second year of your company trading."

This is news to me. Thaks for informing me.


That whle LTD v Umbrella is full of FUD. Factual? Mostly. But FUD usually is. It is the way it is presented that makes it FUD.

So you admit that we are reporting facts ergo we are telling the truth it's just the way we say it that means we are scaring people into using umbrella companies. Oh ok that makes loads more sense now thanks

[prozak]

So you admit that we are reporting facts ergo we are telling the truth it's just the way we say it that means we are scaring people into using umbrella companies. Oh ok that makes loads more sense now thanks

Can you provde me the link on HMRC website which tells me I have to pay CT 6 months in advance?

My HMRC inspectors must be clueless as they haven't asked for it yet.

[prozak]

So you admit that we are reporting facts ergo we are telling the truth it's just the way we say it that means we are scaring people into using umbrella companies. Oh ok that makes loads more sense now thanks

It looks like I have to spell things out to you.... That is OK. I am glad to help. I once considered being a teacher.


Compare these two statements.


To walk across the road you simply walk as you normally would making sure you only cross when there is no traffic.

To walk across the road you need to be very careful with your walking. You need to ensure there are no obstacles, ice or other things that may make walking terribly difficult and dangerous. Whilst walking beware that there are a lot of cars that go really fast and should you make one small error in judgment you will be squashed by a car. This will likely leave you dead or at the very least permanently disabled. If you think you are ready for walking on your own please do so, but if you think it is too dangerous we have walking assistants that can help you.


Both are factually correct.
Which do you think is designed to make people worried about crossing roads and possibly avoiding doing so?

[malvolio]

It looks like I have to spell things out to you.... That is OK. I am glad to help. I once considered being a teacher.

Maybe a good job you didn't then... Before moaning about Lisa's website, you should consider the level of business awareness of the average contractor and read some of the totally naive comments and questions we get on here five times a day. There's quite a few need things spelling out in some detail, and I'd rather rely on ContractorUmbrella than, say, Tarpon for telling the truth...