Umbrellas

[Faust]

Hey folks,

The time, I think, is coming for me to do A Littlest Hobo, and hit the road on my umbrella company, Prosperity4. At the time of joining, I was tempted by the relatively low 6% fees (compared to the 10% I was on with my predecessor), and higher take home.

However, I still reckon 6% is pretty high for simply knocking up a payroll, and to boot, I've fallen out of love with them for not suing an agency on my behalf who have point blank refused to pay my performance related bonus even though it was sanctioned and approved by my client. P4 cite that 'They do not have a legal dept to allow them to pursue unpaid invoices'. The only method available to them is repeated emails.

My brother on the other hand, a lawyer, has informed me that he has seen more than one P4 case pass across his desk where they have instigated proceedings.

With each passing day, my 'faith' in these guys wanes.

Any of you guys got any recommendations for any decent alternatives?

[Dalek Supreme]

Own Ltd and specialist accountant. No question. You call the shots, you make the decisions, you're not trusting someone else with your hard-earned.

[Faust]

...and you pay a shedload more tax.

Been there, done it, and I'm afraid I just got tired of all the hassle with the IR/C&E correspondence...

[Dalek Supreme]

...and you pay a shedload more tax.

Been there, done it, and I'm afraid I just got tired of all the hassle with the IR/C&E correspondence...

Sorry, Faust, but that is just complete arse unless your umbrella is one of those that encourages you to fiddle your expenses or uses EBTs or some other dodgy model of remuneration.

As to the shedloads of correspondence, that's what you pay your accountant for and it isn't very much for the typical contractor company in any case. PAYE slip once/month, VAT return once/quarter, annual accounts and P35, P60/P11D once/year. That's pretty much it.

[nobody here but us chicke]

Errr, No

No way is ltd more expensive than brolly.

If you pay more tax through a ltd then you are either stupid or waiting for a nasty visit from hmcr.

[Faust]

Ignoring the 'stupid' inference, in my personal experience, I found that what I was paying in PAYE and NI combined with corporation tax was higher than what I would pay with any number of umbrella companies.

Admittedly, my accountant was no great shakes, and unfortunately, wasn't really an adequate filter between HR and my letterbox.

P4 don't really make a secret of the fact that they pass on savings to the contractor by offsetting expenses from the monthly tax bill.

[MrsGoof]

P4 don't really make a secret of the fact that they pass on savings to the contractor by offsetting expenses from the monthly tax bill.

and if they are NOT GENUNIE and NOT RECIEPTED then Gordo or his successor will come and get you

[Dalek Supreme]

So then, Faust, an umbrella returns more money if you engage in illegal tax evasion? And this is serious advice to the OP is it? Sign up to someone like P4 and fiddle your expenses?

[Faust]

*sigh*

Okay, let's take this from the top...

I don't fiddle my expenses. I claim for what I use. If the next guy along wants to claim for all and sundry with no receipts and get away with it, then that's entirely up to him, and to be frank, not really my concern.

A quick cursorily glance at my posts shows that I'm not offering advice. In fact, I was just looking to glean some other options from other people who do use umbrella companies.

[Dalek Supreme]

A quick cursorily glance at my posts shows that I'm not offering advice. In fact, I was just looking to glean some other options from other people who do use umbrella companies.

I think it looked to most that you were advising that one should not use own Ltd as that way you pay more tax than with an umbrella. Are you now saying that is not the advice you were giving?