What's happened with umbrella companies recently?

[malvolio]

Well having been a permanent employee for the last five years plus actually working rather than reading the trade press and various forums, I guess I failed to notice something which didn't actually affect me anyway.

Don't mind me, I'm just a little teed off at watching the Arctic victory (something else affecting 14% of the working population you won't have heard of, probably) being turned into a minor disaster by Gay Gordon and the media.

[Bluebird]

You may have missed it. It was a minor change to a trivial law as a result of the last budget. There was a tiny amount of discussion about in the trade press and various forums and bulletin boards but it only affected around 100,000 people so nobody took any real notice...

However, end result is you go Umbrella or you get your own company. No other financially valid choice exists.

when did this happen ?

I noticed the beer & fags bits in the budget but nothing else....

[Old Greg]

Well having been a permanent employee for the last five years plus actually working rather than reading the trade press and various forums, I guess I failed to notice something which didn't actually affect me anyway.

Welcome, potentialcontractor. You'll fit in just fine. Have a look at http://forums.contractoruk.com/thread11349.html if you haven't already. Most of us use Ltd. Cos. unless:

our contracts are caught within IR35 (look this up if you haven't already), or
we're just contracting for a few months

Good luck.

[potentialcontractor]

You may have missed it. It was a minor change to a trivial law as a result of the last budget. There was a tiny amount of discussion about in the trade press and various forums and bulletin boards but it only affected around 100,000 people so nobody took any real notice...

However, end result is you go Umbrella or you get your own company. No other financially valid choice exists.

Well having been a permanent employee for the last five years plus actually working rather than reading the trade press and various forums, I guess I failed to notice something which didn't actually affect me anyway.

[TheFaQQer]

You may have missed it. It was a minor change to a trivial law as a result of the last budget. There was a tiny amount of discussion about in the trade press and various forums and bulletin boards but it only affected around 100,000 people so nobody took any real notice...

Someone's on fine form this morning!!

[LisaContractorUmbrella]

I'm hoping to start a new contract position soon after about 5 years as a permie. I did contract prior to that via Filetravel which gave me an individual ltd company which they managed. Which was fine for me.

So I've been looking at their (and others) website to get set up again but it looks like they don't do individual ltd companies any more. Filetravel, for example, are offering a service for £25 per payment which includes CHAPS and self assessment returns. But I can't find any mention of a limited company being involved. Giant seem to have a similar service but there's no mention of fees.

Are the days of multiple contractors under one company returning? Or are Filetravel and the other companies operating more or less like an employment agency and just processing PAYE like an employer? What are the implications for expense claims now? I'm a bit confused to be honest!

TIA

As Malvolio says there has been a change in legislation. Basically, the only way you are now able to draw dividends is through your own limited company (refered to as a PSC - personal service company by HMR&C). If you work through a third party, such as an umbrella company, you can only be paid via PAYE.

HTH

[smee.again]

You may have missed it. It was a minor change to a trivial law as a result of the last budget. There was a tiny amount of discussion about in the trade press and various forums and bulletin boards but it only affected around 100,000 people so nobody took any real notice...

However, end result is you go Umbrella or you get your own company. No other financially valid choice exists.

HEHEHE, that was a tad sarcastic...

[malvolio]

You may have missed it. It was a minor change to a trivial law as a result of the last budget. There was a tiny amount of discussion about in the trade press and various forums and bulletin boards but it only affected around 100,000 people so nobody took any real notice...

However, end result is you go Umbrella or you get your own company. No other financially valid choice exists.

[potentialcontractor]

I'm hoping to start a new contract position soon after about 5 years as a permie. I did contract prior to that via Filetravel which gave me an individual ltd company which they managed. Which was fine for me.

So I've been looking at their (and others) website to get set up again but it looks like they don't do individual ltd companies any more. Filetravel, for example, are offering a service for £25 per payment which includes CHAPS and self assessment returns. But I can't find any mention of a limited company being involved. Giant seem to have a similar service but there's no mention of fees.

Are the days of multiple contractors under one company returning? Or are Filetravel and the other companies operating more or less like an employment agency and just processing PAYE like an employer? What are the implications for expense claims now? I'm a bit confused to be honest!

TIA