Reply to: Future of umbrellas..

[ratewhore]

Damn!! 2 pages of posts and not one mention of rain.

This board is going to the dogs...

[VectraMan]

Indeedy as have I but if all the brollies just change their business model such that they make everyone director of their own co, own bank accounts etc. as they surely will (otherwise there's absolutely no point for these companies to exist) then surely hector is going to go after the "one accountant running a bunch of contractor companies" model to at some point down the road.

Doomed!

I can see some vague legislation about running your own company vs. managed companies and whole new load of court battles to try and establish exactly what it means

[Worzel]

Interesting comments. Still have a feeling all umbrellas will have to change otherwise the benefits will just diminish. Think I agree with Hattra. Theres possibly a real opportunity for the accountants or existing brolly providers to restructure and setup an easy to use online ltd scheme while still providing all the other really useful stuff like business insurance, IR35 contract approvals etc all under 1 roof.

At the end of the day I didn't go contracting to become some armchair tax bore so if I can outsource as much of that to the qualified experts then that's what I'll do. My main priority is to keep earning!

[wendigo100]

Indeedy as have I but if all the brollies just change their business model such that they make everyone director of their own co, own bank accounts etc. as they surely will (otherwise there's absolutely no point for these companies to exist) then surely hector is going to go after the "one accountant running a bunch of contractor companies" model to at some point down the road.

Doomed!

My company isn't run by an accountant.

I just take the books to an accountant's offices once a year (it could be any accountant), and they check it, do my annual accounts and tell me how much I owe HMRC. Then they charge me a one-off fee of about six hundred quid for the pleasure.

I run my company.

[GeorgeGregan]

Run your own Ltd! What is so hard about it?

About 10 minutes of entering transactions every week or two
Pay wages and expenses every month
Pay dividends, VAT and PAYE every quarter
Send P35, P14/P60s, and a CT cheque to HMRC every year

Accountant does the end of year return.

I've been doing it for ten years. It's not rocket science and doesn't take up much time.

Indeedy as have I but if all the brollies just change their business model such that they make everyone director of their own co, own bank accounts etc. as they surely will (otherwise there's absolutely no point for these companies to exist) then surely hector is going to go after the "one accountant running a bunch of contractor companies" model to at some point down the road.

Doomed!

[wendigo100]

Run your own Ltd! What is so hard about it?

About 10 minutes of entering transactions every week or two
Pay wages and expenses every month
Pay dividends, VAT and PAYE every quarter
Send P35, P14/P60s, and a CT cheque to HMRC every year

Accountant does the end of year return.

I've been doing it for ten years. It's not rocket science and doesn't take up much time.

[rhubarb]

Its all so boring though. Don't you think ?

Rhubarb.

[Xtrain]

DaveB - The only expenses I have are travel and I pay these out of my own pocket, so no impact there. Yes I am an employee of the brolly.

Newby - I had a Ltd company and closed it down. Now better off for it. April '07 impacts the type of Brollies as described within the proposed regs, not those that dont match that.

If you use a PAYE brolly and have no expenses then you are paying them their fee every week for something your agency would do for nothing!

April 07 impacts all brollies. Those operating composite schemes (dividends, expenses) and those operating PAYE schemes (expenses).

IMO there will only be 2 viable alternatives come April: your own limited (via an accountant) or PAYE with the agency. If you are inside IR35 then go PAYE with the agency and cut out the brolly fee otherwise your own limited.

The brollies will be telling you otherwise of course and no doubt agenices will be reluctant to take you on their payroll but if you insist they will do it.

[LordF]

DaveB - The only expenses I have are travel and I pay these out of my own pocket, so no impact there. Yes I am an employee of the brolly.

Newby - I had a Ltd company and closed it down. Now better off for it. April '07 impacts the type of Brollies as described within the proposed regs, not those that dont match that.

[Newby]

and as far as gordo heading msc's off at the pass, from what the guys I spoke to said, if he shuts them down then he will have to shut down every accountancy firm that supports small businesses. But I am not Gordo, although I wish I was, then I could take a running jump!!!!

[Newby]

LordF, your company is talking out of their bottom!!! It is merely trying to keep your business. I would start looking asap for a solution for April 07! You could always set up your own ltd

[DaveB]

Spoke with my umbrella last week and they have sent me a signed letter stating that the proposed regulations for MSCs do not apply to them (we are not paid dividends and are not directors/shareholders) and I will be ok.

Except that you will lose all your currently allowable expenses. Unless you are already an employee of the brolly under PAYE+NI etc. and don't get them anyway.

The only practical response to the PBR is to drop the MSC's and start up your own ltd. You'll make more money in the long run.

[LordF]

Spoke with my umbrella last week and they have sent me a signed letter stating that the proposed regulations for MSCs do not apply to them (we are not paid dividends and are not directors/shareholders) and I will be ok.

[Cowboy Bob]

So it looks as if gordo has come up with another duff law that wont net him as much tax as he thinks it will. When will he learn?

Given that the law isn't drafted yet, I suspect that El Gordo will be listening to what the MSCs are saying they're going to do and head them off at the pass.

[Newby]

I have had a conversation with my old msc and they have confirmed that they are going to change their model to have contractors as directors and have the bank account in the contractors name also. So it looks as if gordo has come up with another duff law that wont net him as much tax as he thinks it will. When will he learn?