Reply to: Help

[Robot]

I use Filetravel as my umbrella company they have a website and show their fees online too.

With filetravel do you get your own limited company? Are you the sole employee / shareholder?

If yes, can I ask, who keeps the bank interest earned on the Corporation tax / VAT / PAYE funds? (PAYE, VAT and Corporation tax is collected monthly and paid quarterly CT is paid 9 months and day after the year end).

The bank interest must run to a couple of hundred quid a year.

Robot

[Contractor]

I use Filetravel as my umbrella company they have a website and show their fees online too.

[DaveB]

Thanks for advice so far, and I have also avidly read some of the other threads. Being new to this I'm still put off by setting up a Ltd Co, in case I decide not to stay contracting.

I just started my first contract and went the LTD + Accountant route. Yes it's a bit more money up front for the company formation but it's not a huge amount and will pay for itself over the course of your first contract.
After that it can only save you money, even if you decide to go back to permiedom eventually.

I use SJD as my accountants, give 'em a ring, they are always happy to chat to prospective customers and give some general advise.

[RussellWest]

Try these guys. I've been using them for a while

I'm not going to disagree with the others regarding Ltd. But for ease of operation and hassle free life I have been going with Atlantic Umbrella.

For initial cash flow they offer something Parasol don't: payment on receipt of time sheets. I'd recommend them. I've had no problems at all with em. More than I can say for others. Please take this advice if nothing else: Avoid P4. I had serious problems getting my money from them. I expect others will agree too.

Good luck. If you want I can put you in touch - drop me a line.

[VectraMan]

Can recommend Parasol as well. Been with them for 3 months on my first contract and they've been great and made the whole thing completely painless, which is a big bonus if you're doing this for the first time and are a little uncertain.

[scooterscot]

Hi guys, new to this so please be gentle. Looking at contracting at ways of running the payroll etc.

Companies looked at so far are Parasol IT, Green Lantern, Giant, Prosperity 4, Brooksons, Orange Genie and Plan IT.

Now thoroughly confused, so would appreciate any input as to who and why I should really consider.

I've been using Giantgroup for the last year and I've not had any problems with them. they cost £35 per week no matter the rate your on, I've no problem with that for someone to make my life easy. They will also give you IR35 insurance for up to 2 years after the end of your contract under the powerhouse agreement.

[Jefferson]

If you want to use an Umbrella then I agree with the others who have recommended Parasol IT.

[Biker Boy]

Thanks for advice so far, and I have also avidly read some of the other threads. Being new to this I'm still put off by setting up a Ltd Co, in case I decide not to stay contracting.

Next question has been answered by a couple of guys, but who are good Umbrellas, and who are really crap?

Cheers in advance.

[Mailman]

I think I'm going to fall within IR35, so would prefer to take an umbrella type route. Thanks for reply though.

If thats your accountant telling you then you need to find one that says your contract isnt IR35 caught!

And also set up your own limited company...then you dont have to worry about being f*cked around by brollies that dont pay up.

Mailman

[mcquiggd]

Well, Ive followed both routes... I had the hard sell from Prosperity4 and just thought 'no way'. I went with Parasol IT and you can arrange a same day payment as soon as they receive funds from the client...

Their fees also include idemnity insurance. I would also say go this route the first time you go contracting just to make life simpler.. once you are sure of yourself, go the Ltd company route if it suits you as you will have a higher take home income.

[tim123]

There are two problems with the umbrella route that you don't have with the limited.

1) If the umbrella goes bust it takes your money with it.

2) If the agency doesn't pay, then *you* can't decide what action to take to chase it. This is down to the umbrella and if they just shrug and say we're doing nothing, you are stuck.

I imagine that 99% of umbrella customers don't suffer from either of the above but if you are in the unlucky 1% .....

tim

[BillHicksRIP]

If you want the quiet life as it's your first contract, I'd go the umbrella route before diving into the LTD. Co aspect. The others will disagree, but I felt it made the transition from permie a bit easier for me. And again, from personal experience, stay the hell away from P4, and give Parasol a look. Fantastic service since I've been with them.

[ASB]

Malvolios right really.

You can probably find a "full service" accountant for about 100 pcm. They'll do everything for you. Payroll, Vat. CT returns etc etc.

No idea what sort of rate you are anticipating but I doubt you'll find an umbrella for this sort of money.

It's your decision of course, the simple fact of giving your money to sombody else and have them give back to you what they don't want could be worth it for you.

[malvolio]

Bing - does not compute...

IR35 is irrelevant in this decision; the only difference the umbrella makes is that you are an employee so IR35 doesn't apply, but only because you're paying full tax anyway on all your income.

Under a limited company, if you're really caught by IR35 (and it's getting increasingly easier to prove you are not, if you do the research properly), you're also paying full tax anyway on all income less 5%

The only difference is you're paying the umbrella to manage your money for you and they will be charging more than any sensible accountant. Economically, it's a no-brainer.

Go umbrella for a simple life and if you have no longer term aspirations at this time. IR35 is not part of the decision.

[Biker Boy]

I think I'm going to fall within IR35, so would prefer to take an umbrella type route. Thanks for reply though.