Free Stuff With An Umbrella Company

[miffy]

miffy's peculiar attitude is misinformed.

Maybe. I'm not being negative towards umbrellas or the use of them, just I've always associated contracting with self employment and therefore you're independant and in business. I feel theres some kind of pride in that too (is that just me?).

When I decided to jump permiedom I looked at brollies myself. I just couldn't get my head round becoming an employee of the brolly (contractor co.). So therefore I am technically working for the brolly and they pay me for temporary assignments done through them under their contracts and T&C's. The purchase of equipment (covered earlier in this thread) also put another nail in the coffin for me. Buying equipment for someone else? what?

Each to their own and you do what's right for your own peronal circumstances at the end of the day. I do agree with malvolios comment on some contractors being lazy though and using brollies purely for that reason. They have even admitted it to me.

[malvolio]

...I've always associated contracting with self employment and therefore you're independant and in business. ...snip...

No, that is not a valid association. In business means you carry business risk and you control all of your own affairs. Using a brolly merely makes you another PAYE temp like the girl from Office Angels. Fine if that's how you want to work, but don't confuse it with being in business.

[miffy]

Using a brolly merely makes you another PAYE temp like the girl from Office Angels.

That's the point I was trying to make

[Hemingfield]

Will you two get a room!

[Fred Bloggs]

He was talking about dispensation again the other day and the "bonus" he gets each day for being out of the house for more than 10 hours (£30 or whatever it is). It's ok though, he's got it in writing from the umbrella so all liability is waived scary.

Do not fall into the trap of believing a dispensation gives you a "right" to tax free cash. It does not. You must be able to produce a receipt to prove expenditure was incurred if asked to by HMRC. A dispensation merely means that certain expenses do not need to be reported on your P11D. I think some brollies are seriously misrepresenting their dispensations in a sort of "nudge, wink, tax free cash...." type of way. I see suggestions made that a £100/day is yours for the taking. This sort of advertising is misguiding at best, IMO.

[assclown]

whats so bad about using a brolly? Would'nt the cost/hassle of registering as ltd, having an accountant and filing a tax return be alot of effort?

Ok so you pay a small fee but especially if you're working short term contracts (month or two here and there under £200 a day). Why is an umbrella such a bad decision?

[malvolio]

whats so bad about using a brolly? Would'nt the cost/hassle of registering as ltd, having an accountant and filing a tax return be alot of effort?

Ok so you pay a small fee but especially if you're working short term contracts (month or two here and there under £200 a day). Why is an umbrella such a bad decision?

If you're firmly inside IR35 territory, commercially there's little in it, especially at the lower end of the income scale. Nobody's saying don't use a brolly then. Even so, you could get better cashflow and flexibility through a limited than through a brolly, especially if you're working overlapping contracts.

Otherwise, because you pay 20% more tax than you need to? Because brolly fees are usually higher than accountants' fees? Becuase you don't get the flexibililty around purchasing and expensing? Because you're working for someone else and following their often arbitrary rules?

Nuff said?