Reply to: Need help with Umbrella Company / LTD Company.

[TykeMerc]

What correlation is there with my rate?

Also, apart from Giant and Parasol does anyone have experience with the others?

Orange Genie
360
Paystream
Focused

From personal experience some years ago I'd avoid Giant like the plague, purely a personal view of course I was very discontented with their service I'm sure other people may have other experiences.

I moved to OrangeGenie who I never had any issues with and despite not being a customer of theirs for about 5 years I needed to check something recently and they dug up the file and answered without any fuss at all. If I was after a new Umbrella instead of using my MyCo Ltd I'd seriously consider them, I'd probably look at Lisa's lot too.

[wubbledoos]

I'm with parasol, so far so good but I have heard iffy reviews but then also some good in all fairness.

Ir35 was likely for me so went umbrella route. That and the lack of knowledge/confidence to set up Ltd.

Sent from my Nexus 4 using Tapatalk 2

[DirtyDog]

But in the interest of fairness you also don't have the responsibilities that a company director has if you work with an umbrella company and you take a risk with your money if you work with any third party - any company can go bust, umbrella companies, agencies or end clients; proper research should afford you a level of protection.

Adding an extra link into the chain of people who can disappear with your money doesn't seem like a risk worth paying for.

[LisaContractorUmbrella]

That depends on your rate, though, and how much you would pay an accountant.

Savings from a Ltd compared to an umbrella (even inside IR35) include 5% for expenses, VAT FRS saving, and (of course!) not having a company in the middle go bust and disappear with your money.

Cost of an umbrella - £95 a month
Cost of an accountant - £95 a month
Cost of being in control of your own money - priceless

But in the interest of fairness you also don't have the responsibilities that a company director has if you work with an umbrella company and you take a risk with your money if you work with any third party - any company can go bust, umbrella companies, agencies or end clients; proper research should afford you a level of protection.

[Craig at Nixon Williams]

What correlation is there with my rate?

If you are on a higher rate then the financial benefit of using the flat rate scheme and the 5% allowance (when IR35 caught) becomes greater. The fees charged by an accountant or an umbrella will not be dependant upon your rate.

Craig

[afro]

That depends on your rate, though, and how much you would pay an accountant.

Savings from a Ltd compared to an umbrella (even inside IR35) include 5% for expenses, VAT FRS saving, and (of course!) not having a company in the middle go bust and disappear with your money.

Cost of an umbrella - £95 a month
Cost of an accountant - £95 a month
Cost of being in control of your own money - priceless

What correlation is there with my rate?

Also, apart from Giant and Parasol does anyone have experience with the others?

Orange Genie
360
Paystream
Focused

[DirtyDog]

if you are inside IR35 you would not really be any better off with a Ltd Co than an umbrella.

That depends on your rate, though, and how much you would pay an accountant.

Savings from a Ltd compared to an umbrella (even inside IR35) include 5% for expenses, VAT FRS saving, and (of course!) not having a company in the middle go bust and disappear with your money.

Cost of an umbrella - £95 a month
Cost of an accountant - £95 a month
Cost of being in control of your own money - priceless

[Craig at Nixon Williams]

There is no doubt that IR35 is one of the more tricky areas of going limited, but again, it need not be! The best thing that you can do is hand your contract over to an expert and have them review it for IR35 (we recommend Qdos for this but there are others), if it comes back that you are not caught by IR35 then you’ll get the full financial benefit of going limited, if not then financially you aren’t that much better off than you would be through an umbrella (though there are other non-financial benefits to both).

If you are interested in finding out more about IR35 then there is a lot of good information around to get you clued up, I’d suggest that a lot of contractors do just rely on the likes of Qdos to give them all of the information that they need though!

Hope this helps!
Craig

[afro]

Without knowing what you do currently it is impossible to tell you how much more admin a limited company will require.

For our service (and I assume other are similar) we ask for a copy of your sales invoice, details of your expenses, a copy of your company bank statement and copies of any HMRC letters received each month. From these documents we can then tell you how much to pay in salary, what you can take in dividends (if you want to take a dividend, the choice is yours) and what taxes are due (when they are due). We will also deal with HMRC on your behalf whenever possible.

Let me know if you have any other other questions.

Craig

Ok, that's not too bad. I will read up on this and get back to you. I do tech-support via ATOS.

A fairly major consideration will be your IR35 position as that will affect the return that you can take from a Ltd Co - if you are inside IR35 you would not really be any better off with a Ltd Co than an umbrella. You should also look at the responsibilities you will have as the Director of your own company - there is loads of info on both subjects on the site - I would have a good read and then make your decision.

I'll be honest... I looked into that IR35 stuff and it's made me more apprehensive about going that route. Thing is, I will have to do it sooner or later...

[afro]

Avoid parasol and giant! there fees are high and they lose your expenses.and the portals are torture

Hmmm... I'm actually with one of them. I won't say who...

[Anonimouse]

Avoid parasol and giant! there fees are high and they lose your expenses.and the portals are torture

[LisaContractorUmbrella]

Hi, I'm unhappy with the Umbrella company that I am currently registered to, the fees seem a bit high (they may or may not be) and they seem to be making mistakes with my pay. I'm thinking about switching to another UC or taking the plunge and setting up a LTD company.

What I need to know is, how hard is it to set up a LTD Co and how much would the likely cost be?

Could you indicate which of these UC's are the best/worst?

Orange Genie
360
Parasol
Giant
Paystream
Focused

Thanks in advance, I find this all really confusing. If you need additional info then let me know...

A fairly major consideration will be your IR35 position as that will affect the return that you can take from a Ltd Co - if you are inside IR35 you would not really be any better off with a Ltd Co than an umbrella. You should also look at the responsibilities you will have as the Director of your own company - there is loads of info on both subjects on the site - I would have a good read and then make your decision.

[Craig at Nixon Williams]

Without knowing what you do currently it is impossible to tell you how much more admin a limited company will require.

For our service (and I assume other are similar) we ask for a copy of your sales invoice, details of your expenses, a copy of your company bank statement and copies of any HMRC letters received each month. From these documents we can then tell you how much to pay in salary, what you can take in dividends (if you want to take a dividend, the choice is yours) and what taxes are due (when they are due). We will also deal with HMRC on your behalf whenever possible.

Let me know if you have any other other questions.

Craig

[afro]

Thanks, how much do you have to do on a month to month basis? in comparison to what I do already with my UC. Expenses, Timesheets, etc...

Off to check out the sticky you recommended

[Craig at Nixon Williams]

I can’t comment on which umbrella companies are best/worst but can offer a little advice on going limited...

The company set-up process is relatively quick and simple, an accountant will be able to form the company on your behalf and register it with HMRC. Once set up, the paperwork can be a bit more than it is through an umbrella but a good accountant should be able to explain it sufficiently to make it seem relatively simple.

Accountants fees can vary, but the main contractor accounts (like ourselves) are quite similar in fees charged, ours is £95+VAT per month – if you are serious about going limited then have a look at a few websites and call a few accountants to learn a bit more about what you can expect for your money. There is a list of the various contractor accountants in the sticky in Accounting/Legal.

Hope this helps you.
Craig