Umbrella Companies - bank charges for same day payments

[rd409]

I may be misinterpreting this but is the implication that if you're contracting long term then you shouldn't use an umbrella?

Yes, you have got it right. That is exactly what I meant. It is always better to work as a limited company, then go through umbrella if you are into it long term.

[Epiphone]

Yes, you have got it right. That is exactly what I meant. It is always better to work as a limited company, then go through umbrella if you are into it long term.

Hmm. I agree to a certain extent. Financially it may be better (in probably 90%+ of cases) to go LTD but I wouldn't blanket say all long term contractors should go LTD.

[LisaContractorUmbrella]

It all just comes down to personal circumstances - we have had contractors with us for 4 or 5 years who just don't want the responsibility of a limited company despite the fact that they would be financially better off. By the same token we have some who work through us for a couple of months and then go limited despite the fact that they are low earners and inside IR35. Different strokes for different folks

[Sockpuppet]

Just go Ltd. My business and personal accounts are with the same bank so money transfers are instantaneous (well faster than it takes me to log out and log in again).

[SueEllen]

Just go Ltd. My business and personal accounts are with the same bank so money transfers are instantaneous (well faster than it takes me to log out and log in again).

That could be a mistake if you ever get into financial difficulties, the bank screws up and freezes one of your accounts as they tend to freeze all of them , or you expand your business and want a loan from the bank.

Most current accounts get FP very quickly i.e. within 10 minutes even if they are in two different banking groups.

[rd409]

Hmm. I agree to a certain extent. Financially it may be better (in probably 90%+ of cases) to go LTD but I wouldn't blanket say all long term contractors should go LTD.

It was never my intention, and I am not saying Umbrella Company is bad. They are there because they are providing a service, that is sought after by many contractors, for a variety of reasons. As Lisa has said she has many clients who have been with them for 4-5 years, just because they can't be bothered with all the hassle; I say, it is not unethical to charge them £££ for a service. The reason is simply because they are lazy, and if they see this tenner as a charge too much, then they should be looking at far more money they are wasting by not using ltd companies.

Again, I am not against the umbrella companies. I just hate contractors who use them, and then complain about hidden charges.

Hope I have made myself clearer.

[rd409]

That could be a mistake if you ever get into financial difficulties, the bank screws up and freezes one of your accounts as they tend to freeze all of them , or you expand your business and want a loan from the bank.

Most current accounts get FP very quickly i.e. within 10 minutes even if they are in two different banking groups.

If I get into trouble, how would the bank associate my personal account with the business account? I HSBC for both, and I have two separate ways to access both services. I thought my ltd was not the same as me? If the bank is in trouble, then I would assume all my money are at risk, but being with a global bank, I think I have minimized that risk (hopefully!). Could you please explain what you said, and how it is possible.

[SueEllen]

If I get into trouble, how would the bank associate my personal account with the business account? I HSBC for both, and I have two separate ways to access both services. I thought my ltd was not the same as me?

It isn't legally but when I set up my business account as the director I got personally credit checked for it just like I got credit checked when I opened up my personal current accounts.

Plus another well known bank known for it's poor customer service froze a guy's personal account and also froze the business account of the business he was the director of for "fraud prevention reasons". As a result he had no access to any bank accounts.

Mind you I know that bank has a history of being difficult with people who move thousands of pounds around even if the transactions can easily be traced.

If the bank is in trouble, then I would assume all my money are at risk, but being with a global bank, I think I have minimized that risk (hopefully!). Could you please explain what you said, and how it is possible.

Nope HSBC are registered on the FSA register and so are covered under the FSCS scheme. For depositors the FSCS scheme pays out a max of £85,000 per person per firm (or FSA registration licence). So as long as you don't have more than £85,000 in total then you won't lose out. Small businesses are also covered.

[wim121]

I just hate contractors who use them, and then complain about hidden charges.

Hope I have made myself clearer.

I feel that is a little harsh.

Umbrella services are like any other company, paid to do a job.

When you pay someone to do a job, as a consumer, you want they to do it friendly, hassle free and honestly.

Umbrella companies are no different. Sometimes it can be worth the extra few pounds a week to get an umbrella who states all their charges clearly and make tax as easy as possible for you. After all, that is the whole point of umbrellas.

Why on earth, would anyone who doesnt want the complexity of going LTD, then feel happy about complexity in fees to the umbrella?

[dspsyssts]

Parasol charge £30 for same day payment! can anyone beat that?...