Best Umbrella Company to use?

[oldtimer45]

Umbrella

I chose Parasol, used them for two years, and their service has been pretty good, apart from twice when they didn't pay me on time or missed requests for a CHAPS payment.

Their daily allowance says £15 per day max as well, but I will no longer claim that as will have been at my current contract/site for two years if I get renewed.

Just hope the IR don't chase me for the last 2 years then!

[gingerjedi]

You are forgetting you must pay personal tax on dividends at the end of the year! Your 80% will become 70%.

Eh? I'm confused are we talking ltd here? I thought you paid personal tax on your salary and corporation tax on div's so what's the personal tax rate on div's that have already been taxed?

[malvolio]

Eh? I'm confused are we talking ltd here? I thought you paid personal tax on your salary and corporation tax on div's so what's the personal tax rate on div's that have already been taxed?

Errmm... ever hear of 40% higher rate taxation band ??

[Lewis]

Eh? I'm confused are we talking ltd here? I thought you paid personal tax on your salary and corporation tax on div's so what's the personal tax rate on div's that have already been taxed?

I am talking Giant Powerhouse. They pay you salary and dividends each month. If your salary and dividends are less than the upper tax bracket (about £33K) then you are ok. But if they come to more you must pay additional personal tax on the dividends above £33K. As a very rough guide keep about 15% of your Giant dividends in your bank account so you have enough to pay the tax man at the end of the year. Do a google on dividend tax credits and you'll find all you need.

[gingerjedi]

Errmm... ever hear of 40% higher rate taxation band ??

I know this will make me sound like a total noob but... I don't understand

Although I now have a ltd I have yet to pay myself salary or div's so I get the part where you pay tax and NI on salary and CT on div's, so do you pay the 40% on anything above the threshold when salary and div's are combined as income?

[malvolio]

(Can we have a thud...thud...thud... helmie please???)

The tax credit bit of your dividend is to offset the basic rate income tax due since the money has already been taxed as CT. However, once your gross income goes over the higher rate threshold at £37k or whatever it is now, you pay 40% on everything above that. So there is additional tax to pay even if it is dividend income because all you've paid so far is basic rate.

Please don't tell me you didn't know that and your accountant hasn't told you... Ooops...

[gingerjedi]

Ok I posted before I saw your post Lewis, I thought Giant were an MSC?

[gingerjedi]

Dam, it happened again!

And no he didn't tell me... I thought it was too good to be true

[Foresight One]

Foresight One

I appreciate that some or most of you will probably think we are new boys on the block, but we’re not.

We have been operating in the contracting industry for over 15 years now with both UK and overseas based contracts.

The company is administered by a firm of Chartered Accountants and this guarantees not only compliance but the necessary skills to provide a comprehensive quality service.

We have and are currently dealing with most of the major contracting agencies both in the UK and abroad.

Our companies will be fully compliant and tax and NI will be deducted as the contractors will be treated as employees. All relevant documentation PAYE documentation will be taken care of (P60’s, P45’s etc)

I appreciate that this service will not appeal to those who can administer their own companies where there are still significant advantages in voting a large dividend and paying little or no NI.

However the service we are offering is for those not confident in administering their own company and all that comes with the responsibilities of being a director (accounts preparation, tax computation and submission, VAT registration and submission, statutory Annual Return filing, PAYE registration, monthly and annual PAYE returns etc etc)

The penalties for non submission or incorrect submission of the above are severe and Government agency returns can sometime be technically difficult, this is why accountants such as us spend years obtaining qualified status and maintaining our qualification with regular updates.

The other reason we are providing this service is for those who may feel they are competent in running their own company but would prefer to concentrate on what they do well, i.e. their own contract work!

As you will gather from the above this service is very similar to most on the market so why should you choose us? We do not charge a fee, not a bean! The service and set up is free. Why? Well we earn a significant amount of interest holding Government monies in our bank account, but we invariably pay our contractors same day. There are no hidden extras, but many contractors engage us to provide additional services, e.g. consultancy, estate planning, holiday home ownership etc. etc.

As I have mentioned previously, if you would like further information or reassurance in connection with our services then please e-mail me on chrism@foresight.co.uk.

[Money Money Money]

I appreciate that some or most of you will probably think we are new boys on the block, but we’re not.

We have been operating in the contracting industry for over 15 years now with both UK and overseas based contracts.

The company is administered by a firm of Chartered Accountants and this guarantees not only compliance but the necessary skills to provide a comprehensive quality service.

We have and are currently dealing with most of the major contracting agencies both in the UK and abroad.

Our companies will be fully compliant and tax and NI will be deducted as the contractors will be treated as employees. All relevant documentation PAYE documentation will be taken care of (P60’s, P45’s etc)

I appreciate that this service will not appeal to those who can administer their own companies where there are still significant advantages in voting a large dividend and paying little or no NI.

However the service we are offering is for those not confident in administering their own company and all that comes with the responsibilities of being a director (accounts preparation, tax computation and submission, VAT registration and submission, statutory Annual Return filing, PAYE registration, monthly and annual PAYE returns etc etc)

The penalties for non submission or incorrect submission of the above are severe and Government agency returns can sometime be technically difficult, this is why accountants such as us spend years obtaining qualified status and maintaining our qualification with regular updates.

The other reason we are providing this service is for those who may feel they are competent in running their own company but would prefer to concentrate on what they do well, i.e. their own contract work!

As you will gather from the above this service is very similar to most on the market so why should you choose us? We do not charge a fee, not a bean! The service and set up is free. Why? Well we earn a significant amount of interest holding Government monies in our bank account, but we invariably pay our contractors same day. There are no hidden extras, but many contractors engage us to provide additional services, e.g. consultancy, estate planning, holiday home ownership etc. etc.

As I have mentioned previously, if you would like further information or reassurance in connection with our services then please e-mail me on chrism@foresight.co.uk.

You want to try and put this in a few more threads mate!