Worst Umbrella Company - Prosperity4

[rootsnall]

I agree you need to have an undertanding of what numbers are being produced. I think the average contractors Ltd accounts are pretty simple ( but maybe not if you mix IR35 and non IR35, never done that ! ) and its easy enough to wrap your head around around the rough figures. The changes in dividend tax have had me baffled once or twice but its not that hard, its now easier than it used to be.

[malvolio]

Whether you use a Brolly or Ltd, you *must* have a bare minimum of being able to calculate what your figures are.

Why? Do you have an SLA to measure how good your electricity supply is? A manometer on your mains gas supply?

I know what I've invoiced, I know my rolling VAT liability to within a few hundred quid, I can guess my overall tax liability per annum as being around 75% of gross pre-VAT income. That takes a minute or two...

There's no point in paying professionals and then doing the work yourself, is there?

[partimer]

accounts

I think you're losing sight of the important things here when you're discussing "it takes me 5 minutes" or whatever time is involved.

Your accounts are as complex as your business. You can have loads of multiple simultaneous IR35/non IR35 contracts. You may not be zero rated VAT and claim back stuff (VAT on your petrol), etc. etc.

It's not a contest between who has the easiest accounts. Whether you use a Brolly or Ltd, you *must* have a bare minimum of being able to calculate what your figures are. Otherwise how do you know you're not being stitched up by your Brolly/Accountant.

Ask the celeb Sting, etc.
It's your money. Make sure you know where it's going regardless whether you use a Bolly or Ltd.

[rootsnall]

So 6 hours each year to do all company admin including accounts, companies house returns and tax returns?

The accountant does all that for £55 a month. I just invoice once a month which is a 5 minutes of a job. And every 3 months ( ie. for VAT return ) I sit down and do my expenses, photocopy a few bits and bobs, sign a few cheques and send it to my accountant, it might take an hour !? He sends me the various returns to sign when needed with 'sign here' type instructions. I've used him a long time and he hasn't cocked up anything up yet but I have a quick check that the accounts and important things look right. I do my own self assessment and use that as a bit of check that my Ltd figures ( eg. divis, tax paid ) stack up.

[malvolio]

Well about three hours in my case, actually - all the boring tedious detail work is what I pay the accountant for. But it's not actually much more than that if you do it all yourself assuming your a typical one-man-band contractor - a lot of people take more time to fill in their SA forms (not that I do those either!).

It's a complete myth that a small Limited Company is a hassle. It only gets complicated if you have employees.

[Bradley]

Re:Time

I reckon my Ltd admin is about 30 mins a month, similar to an umbrella I would think. Both options are a doddle until somebody cocks things up which happened more often when I dabbled with an umbrella.

So 6 hours each year to do all company admin including accounts, companies house returns and tax returns?

[rootsnall]

I reckon my Ltd admin is about 30 mins a month, similar to an umbrella I would think. Both options are a doddle until somebody cocks things up which happened more often when I dabbled with an umbrella.

[malvolio]

Oh, I totally sympathise. I must spend almost three hours a year filling in forms and writing cheques...

[Churchill]

Has anyone else noticed that people using umbrellas preach about how good the contractor lifestyle is!!!

...they have obviously forgotten that they are just permie employees of a really weird company that charges you to work for them. Remind me again why people use umbrellas, I just can't seem to grasp it?

It's called getting a service that we pay for. I for one can not be arsed completing the paperwork required for running a small business. I am a glorified temp, not a business. This way, the tax man gets his, I get mine and I can sleep soundly knowing that Hector/C&I aren't going to smash down my door in the middle of the night. I charge for software development, not filling forms/paperwork in.

[boredsenseless]

Has anyone else noticed that people using umbrellas preach about how good the contractor lifestyle is!!!

...they have obviously forgotten that they are just permie employees of a really weird company that charges you to work for them. Remind me again why people use umbrellas, I just can't seem to grasp it?

[Not So Wise]

Less hassle (or what should be less hassle) is main reason people use umbrellas i would think. Be it either guy who will be only contracting for a short while or the one who is terrified of paperwork

[Chico]

I have never understood the logic of having an umbrella company. Surely it means another link in the chain between yourself and your hard earned cash. Another pig to feed from your trough. Snort snort.

[insight14]

Preaching to the converted mate - we're already Kindly Aware.

Contractors beware of using the above as an umbrella company. Not only will you be disappointed by the service, They have several hidden charges once you are fed up of getting paid less.
I have lost alot of money due to them so Please Kindly be Aware.