Reply to: Parasol putting up monthly fees from 5th Oct

[mikelaluz]

Limited Company Option Pays More

Having recently moved from an Umbrella to my own limited company I have been pleasantly surprised by both the lack of any additional paperwork but more importantly the increase in take home pay.

Find a good accountant - he will do everything for you

[IR35 Accountant]

I wholeheartedly agree with Maslin's earlier post. The 'hassle' in operating through a limited company is perceived rather than real particularly when your accountant does all the day to day bookkeeping, VAT returns etc. We have a number of clients that have joined us from umbrella companies and none have commented on there being extra hassle. The tax savings can be very significant and the fees are on a par if not cheaper than umbrellas.

...another ad removed.

[watford]

Switched from Parasol to Ltd a couple of mnths ago, still no P45 from them. Perhaps not suprisingly they're not being very helpful at all now I'm no longer paying them, not replying to email, difficult to get on the phone etc.

Wish I had left them and gone Ltd from the start of the tax year.

I did the same and left parasol for quay , and even then they were abit slow in sending the p45 , if you do pay tax at a higher rate you can always get a refund

[Maslins]

Many people seem to think there's a huge amount of hassle in "going limited". That's really not the case.

Sure, there are a few things that need to be filed on an annual basis, but as has been discussed above, your accountant would typically do this for you for less than some of these umbrella companies are charging.

Other than that, you'd need to chase your own debts, which if you regularly work for the same people shouldn't be difficult. You also need to do your own bookkeeping, which with packages like FreeAgent (40% discount through us) is an absolute breeze, even for those who really aren't numbers people.

Other benefits not typically mentioned are the massive cashflow advantage of paying your taxes far later than you would under PAYE, and also the potential benefits of VAT registration (reclaiming VAT on your costs, or benefitting from the flat rate scheme).

Can't really understand why people go the umbrella route...even if you are caught well & truly by IR35, but especially if you're not.

[spig]

Switched from Parasol to Ltd a couple of mnths ago, still no P45 from them. Perhaps not suprisingly they're not being very helpful at all now I'm no longer paying them, not replying to email, difficult to get on the phone etc.

Wish I had left them and gone Ltd from the start of the tax year.

[Xtrain]

so Mr Carrington...why would anyone choose Parasol at £120 pm and get paid once rather than use you at £12.50 pw and get paid every week?

There must be a difference...surely!

[Alan @ BroomeAffinity]

How very altruistic of you.

Absolute bargain. £12.50 fee for nothing!

[Hex]

Carrington reduced its fees to £12.50 (gross) per week in Jan 09 to help its contractors through the recession

How very altruistic of you.

[Carrington Accountancy]

possibly -

do you charge extra for insurance?

do you charge extra for CHAPS?

cheers

No - insurances are included and same day payments are included in the weekly fee!

[Carrington Accountancy]

I'm going to drop them. Any umbrella's recommended?

second ad removed.

[original PM]

possibly -

do you charge extra for insurance?

do you charge extra for CHAPS?

cheers

[Carrington Accountancy]

Leading Umbrella Company

Advertisement and link removed.

[MPwannadecentincome]

In over 20 yrs of contracting I have never once been asked for any insurance related documentation. I have also never heard of any professional indemnity claims that have arisen. So my annual insurance fees are less than Parasol's monthly fee!

Previously as a permie I was asked by Purchasing to get insurance documentation prior to signing any contracts with direct contractors.

I have had to provide documentation to potential USA clients.

[Bunk]

I agree it's not down to money really. I worked through an umbrella company for a couple of years before I took the plunge and decided I was going to contract long term. In terms of fees I pay £828 for my accountant and £172 for my insurance, comes to exactly £1000. That's definitely less than I was paying for the umbrella company (£28 a week IIRC) but it's not the reason I switched.

[Xtrain]

In over 20 yrs of contracting I have never once been asked for any insurance related documentation. I have also never heard of any professional indemnity claims that have arisen. So my annual insurance fees are less than Parasol's monthly fee!