Who to chase for Payment.

[Zen Contracting]

A step in the right direction. If you can also build in protection for the money I've earned that's in your care, so that if you go bust, I don't lose out, then you'd have a product which would override most of my objections to using a brolly in the first place.

We are working on an idea to protect monies that belong to the contractor rather than to our business. We are meeting with our solicitors and our bankers next week to run through the various options open to us.

[Zen Contracting]

A step in the right direction. If you can also build in protection for the money I've earned that's in your care, so that if you go bust, I don't lose out, then you'd have a product which would override most of my objections to using a brolly in the first place.

I'd be very interested in hearing about the other objections that you have to using an umbrella.

Thanks.

David.

[malvolio]

I'd be very interested in hearing about the other objections that you have to using an umbrella.

Thanks.

David.

The obvious one is not about the umbrella per se, it's about IR35. If you are outside IR35 (and that should be almost all of us...), then why would you want to use an umbrella and pay 15% or so tax that you don't need to pay?

Your potential customer base is in two parts - the very few freelance contractors that are genuinely IR35 caught, and a larger group that probably aren't but can't or won't work out how not to be and pay up anyway. And even inside IR35, there is benefit to running your own company vs an umbrella, dependent mostly on how much you pay for accountancy services.

Anyone who understands IR35 and related matters would have no need for an umbrella. However, if you could work a way to be an umbrella that runs LtdCo Salary/Divvy payments without becoming an MSC, you would have something unique. I suspect, though, that is not an option.

[NotAllThere]

I'd be very interested in hearing about the other objections that you have to using an umbrella.

Thanks.

David.

As Malvolio says. Also, even if the brolly could legitimately provide me with the same net income as I get through a ltdco. I still wouldn't use it, because I like to control my money. But with good dunning procedures, and "my money" protected, it could be more attractive if I had an IR35 caught contract.

I'm not UK resident, and have no plans to work in the UK. However, if I did get a contract for a few months in the UK (i.e. not long enough to make me tax resident), it has occured to me that a brolly might possibly provide a good way of getting paid, without having to set up a UK company, since some agencies won't deal with a non-UK ltdco.

[Zen Contracting]

Thank you for that feedback. We will also, running alongside the umbrella business, be providing a full service solution for those contracting via their own limited companies. Our focus will be on price and service (mainly service) but again I'd be interested in hearing what you'd look for in a provider.

We are a small, flexible and innovative accountancy practice so we are open to ideas.

Regards.

David.

[mikeyboy]

Ok, money arrived in the bank today. So as promised, time to name and shame.

** Polaris LTD **

May they rot in hell with my Bank Manager!

[ASB]

We are working on an idea to protect monies that belong to the contractor rather than to our business. We are meeting with our solicitors and our bankers next week to run through the various options open to us.

I'm curious. Surely accountant can - in the same as solicitors and estate agents etc run client accounts. Nicely ring fences the clients money.

I don't see why you can't just operate in this way to segregate the cash and then cross charge to the account "your" portion of the clients monies. surely it's just a matter of transferring payment at the instant they arrive to the designated client account - or better still getting the payments automatically routed there in the same way a solicitor or estate agent.

This seems so blindingly obvious I don't see why people don't do it. I guess you'll probably be about to tell me.

[breezeblocker]

Late invoice payment

A better way might be www.due2pay.co.uk, it's a cool register of companies paying invoices late. It's realtime stuff not like other credit referencing.
They send emails and faxes reminders to your customer........... then if they don't pay, other suppliers will see !. Another good idea is their WATCH LIST, put a company on that and the moment anybody lists them as a late payer, bingo, you get an email and you can email them as well to get their slant. Love it.
A whole lot cheaper than solicitors and you get the watch list to boot.