The murky world of umbrella companies

[edwardo38]

Hi from a new member and 1st time poster,

I have recently re-entered the world of contracting as a computer operator and as I felt that I fell within the remit of IR35 started looking fro an umbrella company.

I was recommended prosperity4 by a friend (now ex friend !) but have since discovered to my cost that they are very expensive (6% of monthly earnings), hold on to your money for ages and put an extra 5% of your hard earned into a holding account (which they no doubt earn interest on) that I dont want.

I admit that my ignorance and lazy lack of research on this has served me right but now I want to make sure that when I move from P4, as I want to asap, that I make the right choice to maximise my earnings.

From looking at forums and websites on the internet I am more unsure than ever, should I run the risk of starting a SPLC ? or should I stay with the umbrella option and if so does anyone have any idea's of a better option using a company that wont rip me off !!!!

Any thoughts on this would be greatfully received !!!!!!!!!!!

[Pondlife]

I would check your contract with P4 for any exit/leaving clauses first.

General advice on here is to set up your own Ltd and get an accountant to help. If you do want to stay with a brolly then PCG have one with Parasol that are supposedly quite good.

Oh, and read the first timer guides aswell.

HTH

[Nixon Williams]

I think most contractors on here will agree that there is little risk running your own company when compared with using an umbrella.

Anyone with average common sense can handle a limited company and most of the hassle should be handled by your accountant. Certainly most of our clients remark how easy it all is!

Alan

[Xtrain]

Brolly's

I would give brolly's a wide berth if I was you. A ltd company using a decent & savvy local accountant would be best.

In addition to getting a better return for less fees you also avoid the chance of a Safe Solutions collapse and I'm not so sure I would be happy with my money being with Parasol considering they now owe £12M to the bank and like all brollys have no tangible assets!!