Parasol up for sale according to Rob Crossland

[The Spartan]

Why introduce a step in the chain that could potentially disappear in the night with your money, why introduce into the chain an organisation that prevents you having total control of your money, why introduce into the chain an organisation that effectively makes you 'their' employee when the industry generally is one of self employment!?

Beats me why people use them.

Not everyone is cut out to be a contractor and a successful one at that, why go through the trouble of opening up a limited company if you don't knowif you can hack it. When I worked at CH in Compliance I used to get numerous calls from IT Contractors who'd set up companies and not used them and because they didn't know how to closed them down properly they risked prosecution for not filing AR's and AA's.

I personally love contracting and think it's for me so eventually I will go Limited, but for the moment I am happy to use an umbrella company until I think I have enough finances to go limited properly.

[BolshieBastard]

Not everyone is cut out to be a contractor and a successful one at that, why go through the trouble of opening up a limited company if you don't knowif you can hack it. When I worked at CH in Compliance I used to get numerous calls from IT Contractors who'd set up companies and not used them and because they didn't know how to closed them down properly they risked prosecution for not filing AR's and AA's.

I personally love contracting and think it's for me so eventually I will go Limited, but for the moment I am happy to use an umbrella company until I think I have enough finances to go limited properly.

Yes, I can understand people using a brollie for the first 6 months of their contracting career. But beyond that?

Frankly, if people arent sure contracting is for them after 6 months then, imvho, they arent suitable. In any event, after 6 months, one should be looking to operate as a business not a psuedo employee.

[pmeswani]

Yes, I can understand people using a brollie for the first 6 months of their contracting career. But beyond that?

Frankly, if people arent sure contracting is for them after 6 months then, imvho, they arent suitable. In any event, after 6 months, one should be looking to operate as a business not a psuedo employee.

What about those with bad credit record? Just because some people don't go down the Ltd Co route, it doesn't mean they aren't cut out to be Contractors. Not everyone is out to be a contractor for the money.

[northernladuk]

Yes, I can understand people using a brollie for the first 6 months of their contracting career. But beyond that?

Frankly, if people arent sure contracting is for them after 6 months then, imvho, they arent suitable. In any event, after 6 months, one should be looking to operate as a business not a psuedo employee.

Unfortunately I have to agree totally with this. To me contracting is more than turning up to a gig for short periods of time and a different pay system to permie. Not having a go at anyone like but this hits the nail on the head for me.

[northernladuk]

What about those with bad credit record? Just because some people don't go down the Ltd Co route, it doesn't mean they aren't cut out to be Contractors. Not everyone is out to be a contractor for the money.

Agreed but 8300 people on their books do not all have bed credit. These are the exception.

[pmeswani]

Agreed but 8300 people on their books do not all have bed credit. These are the exception.

Point taken, however I just highlighted one reason why people don't go Ltd. The point I was trying to make is that being a Contractor doesn't have to mean owning a Ltd Company. To a lot of people it is about the money and lifestyle, to some people it's about the flexibility in where they work every few months (or years). Some people I know had a Ltd Company, but decided to go back to Umbrella, because the cost of running the business didn't make it any more efficient for them. I don't buy into this argument that if you don't have a Ltd company, you are not cut out to be a Contractor.

[malvolio]

Point taken, however I just highlighted one reason why people don't go Ltd. The point I was trying to make is that being a Contractor doesn't have to mean owning a Ltd Company. To a lot of people it is about the money and lifestyle, to some people it's about the flexibility in where they work every few months (or years). Some people I know had a Ltd Company, but decided to go back to Umbrella, because the cost of running the business didn't make it any more efficient for them. I don't buy into this argument that if you don't have a Ltd company, you are not cut out to be a Contractor.

OK, but you can argue that the other way. Running a limited is a lot cheaper than paying someone to do it for you; it's not about cost, it's about not wanting to be bothered. You may still be a contractor, it just that you aren't a freelance one but a kind of Agency Temp GTi.

But WGAS anyway. People work the way they want to work; I would likely be be sectioned if I had to obey some other company's rules about how I do things. Let's leave it at that.

[TheFaQQer]

Beats me why people use them.

Because some people are genuinely IR35 caught, and don't want to run their own business. If I was inside IR35, then I'd probably go umbrella.

[TheFaQQer]

Whilst I am not disagreeing with your statement, I wonder if people think the same about banks who have the potential to go under or take your money and spend it on speculation and hope they don't lose it?

Banks give you £50k protection on your accounts, though. Umbrellas don't.

[TheFaQQer]

You could also use the same arguments for contracting through an agency

PCG plus will provide some cover for an agency failing. They don't do the same thing for umbrellas, though.