Best Umbrella Company to use?

[Wanderer]

Hi, I’m fairly new to contracting and totally new to using umbrellas (don’t have them in New Zealand!) I’m thinking about using parasol, planIT or Atlantic umbrella, I’ve talked to them all, and they all sounded OK, any warnings or recommendations before I make the leap?

Yes, the main warning is that you will pay a LOT MORE TAX with an umbrella. However, you will get a lot less agro with an umbrella and it would probably be a better bet if you are earning < 50,000 per year or will be working for less than a year.

Watch out for their BS umbrella earinings calculators, they presume that you will be claiming loads of expenses which probably isn't true. The amount of tax you pay on your income is fixed so there isn't anything to choose between them except their monthly charges and how easy they are to use. The "dispensations" they trumpet is a load of tutae. You can only claim for expenses actually incurred.

If you have a contract outside IR35 then consider going with a LTD company. Starting out, I'd recommend that you get an accountant to step you through what dividends to take, PAYE and VAT. Make sure you get an accountant who will sort out EVERYTHING for you so you just earn the money and write the cheques to the tax man when the accountant tells you to.

When you do bugger off back to Kiwi-land, make sure you do a tax return as you leave because if you work part of the year then you can get a tax refund.