Which umbrella - OrangeGenie vs Parasol

[pmeswani]

neither of them are the most tax effective. Umbrella's are easily the worst from a tax effective perspective, just offsetting your taxable income with expenses. Then everything else is taxed PAYE. You're also hit with employer and employee National Insurance. Starting your own Ltd Company is more tax efficient but a massive admin headache. The most effective structure is Financial Management Structure. I have worked through one for the past 4 years and get 78-82% of my gross. I do no invoicing, no admin. There are quite a few of them out there, some better than others. Have a look at www.contractortaxation.com they list several companies on there that do these structures

So you would recommend starting a Ltd company if you are on a 3 month contract paying £100 p/d?

Limited companies are not efficient for every occasions. Yes it is tax efficient, but in the big scheme of things, it can be more expensive than going through an umbrella. One has to look at the overall picture to see if setting up a Ltd company is worth it. In some scenarios, it isn't.

[Torran]

neither of them are the most tax effective. Umbrella's are easily the worst from a tax effective perspective, just offsetting your taxable income with expenses. Then everything else is taxed PAYE. You're also hit with employer and employee National Insurance. Starting your own Ltd Company is more tax efficient but a massive admin headache. The most effective structure is Financial Management Structure. I have worked through one for the past 4 years and get 78-82% of my gross. I do no invoicing, no admin. There are quite a few of them out there, some better than others. Have a look at www.contractortaxation.com they list several companies on there that do these structures

[DiscoStu]

neither of them are the most tax effective. Umbrella's are easily the worst from a tax effective perspective, just offsetting your taxable income with expenses. Then everything else is taxed PAYE. You're also hit with employer and employee National Insurance. Starting your own Ltd Company is more tax efficient but a massive admin headache. The most effective structure is Financial Management Structure. I have worked through one for the past 4 years and get 78-82% of my gross. I do no invoicing, no admin. There are quite a few of them out there, some better than others. Have a look at www.contractortaxation.com they list several companies on there that do these structures

More

Every post you've made has plugged this website

[Svalbaard]

I was Ltd. but found it too much of a hassle so went with umbrella as year on year I only take home a slightly lesser percentage than other Ltd. contractors I know, and I like having all of my income accounted for rather than having to pay some of next years corporation tax out of this years income.

I went with Parasol who have gone down the tube in recent years (costs up / service down, down down...)

Am now with Contractor Umbrella and very happy indeed. Excellent service, simple web based interface and not too expensive.

PS - the days of the umbrella are not numbered. All HMRC have stated is that they are to review the expenses dispensation schemes that some of the dodgier ones run. If you are all above board then you will be OK.

[Svalbaard]

neither of them are the most tax effective. Umbrella's are easily the worst from a tax effective perspective, just offsetting your taxable income with expenses. Then everything else is taxed PAYE. You're also hit with employer and employee National Insurance. Starting your own Ltd Company is more tax efficient but a massive admin headache. The most effective structure is Financial Management Structure. I have worked through one for the past 4 years and get 78-82% of my gross. I do no invoicing, no admin. There are quite a few of them out there, some better than others. Have a look at <spam> they list several companies on there that do these structures

Yes, and when HMRC come knocking on your door to investigate your tax avoidance you will find that your Financial Management Structure will have left you high and dry to face your day in court alone.

[Hevra]

Late comer to the thread, but from an agency perspective and my own personal experience (stressing this is MY experience over the last 2 years of processing timesheets) OrangeGenie are pretty good when it comes to sorting out those of our contractors who believe timesheet deadlines are more guidelines than rules.

We can email our contact there and get them to pass on a TT for us without fuss and without charging the contractor again for it.

Although, if you want hassle free, I would choose ***personal opinion incoming*** Filetravel or Maxim Finance.

H

[Beefy198]

OrangeGenie are pretty good when it comes to sorting out those of our contractors who believe timesheet deadlines are more guidelines than rules.

That's their problem then isn't it?

What would they do if they ran their own ltd co and missed an invoice deadline? Cry about it?

[Hevra]

I think I'm in love

Yes, it most certainly is their problem, but sadly that doesn't seem to stop them shouting at me

H

[Beefy198]

Contractors are not babies or kids that need appeasing. Nor should they be stroppy teenagers.

Hell, we're meant to be professionals... and in some cases... dare I say it.... intelligent too.

So if your agency tells you that you need to get a timesheet and/or invoice to them by 1pm on a Monday, where is the big deal?

If you give in to them shouting they'll just be a bigger asshole the next time.

Anyway, that's my viewpoint on the matter

[Hevra]

Marry me!

To be fair we don't have many <insert swear word of choice> types working for us, we do have one person who regularly drops the F-bomb on the phone to us and WRITES HIS EMAILS LIKE THIS BECAUSE CAPS LOCK IS CRUISE CONTROL FOR COOL.

You know who you are (yes, he is a poster on these forums)

Anyway, sorry for derail

H