How to go about choosing an umbrella company?

[jamesbrown]

How can we verify if it is really inside or outside? Can the recruiter or company really say it is outside if it is actually inside? Are they not worried about legal implications of this to them?

They probably should be worried but, on the other hand, they might not be if there are contract clauses that flow down and seek to transfer liability, because they may work.

Again, as I suggested earlier, you should read this thread (if you'd read it, you wouldn't have had that question):

https://forums.contractoruk.com/acco...contracts.html

[stit]

Only if the contract is actually outside IR35 which given the information you have given us doesn't sound like the case.

How can we verify if it is really inside or outside? Can the recruiter or company really say it is outside if it is actually inside? Are they not worried about legal implications of this to them?

[eek]

I think the difference is significant (monthly about 2k !!) because Ltd is tax efficient.

Only if the contract is actually outside IR35 which given the information you have given us doesn't sound like the case.

[stit]

. Yes it's not as efficient but in the long run the difference is peanuts and you've got options as your career progresses.

I think the difference is significant (monthly about 2k !!) because Ltd is tax efficient.

[northernladuk]

[/LIST][*]go via the umbrella. Try for a month or two.

1. Carry on with the umbrella
2. Or, open an Ltd and switch from umbrella.

[/LIST]Appreciate your time and support as always.

This for me. That's what I did and many others on here. Yes it's not as efficient but in the long run the difference is peanuts and you've got options as your career progresses.

[jamesbrown]

I think you had it right first time, go umbrella.

If you think about going with a Ltd and pretending this is outside, read this first:

https://forums.contractoruk.com/acco...contracts.html

[malvolio]

Thank you everyone for your kind suggestions.

Since it is outside, it is very tempting to go Ltd. But, I am not very sure if I want to do it for long term. If I can and I like it, I would like to be Outside and continue the Ltd. I am actually not hoping to me made permanent. It is just their offer. It may be I would want to continue contracting with them or change to someone else.

So, I have these options:

1. start an Ltd company right away. See how it goes.
   1. carry on with it for long term - if it works well (I am comfortable working, able to get new contracts etc, no legal issues or more awareness about it)
   2. close Ltd after few months if I am not comfortable carrying on (and may be switch to perm or umbrella). Will it be an issue if I close down a company so quickly from HMRC perspective? What If I move out of UK after an year or so?
2. go via the umbrella. Try for a month or two.
   1. Carry on with the umbrella
   2. Or, open an Ltd and switch from umbrella.

Appreciate your time and support as always.

A limited company is a one year deal for one thing. However that is minor. Less minor is the gig being outside, that is very much in doubt. Anyway...

You are not experienced in freelance contracting and have a huge amount to learn; that much is evident from the above.

In this climate, outside work is a long way from being certain, and even then will always be open to "re-classification" as clients get worried by HMRC propaganda.

Go with the umbrella for now. That will give you a chance to learn, to understand what it means to be properly freelance, to see what the likelihood of continuing to work outside is (pretty damn slim, I would suggest, unless you are in a niche market). That learning curve is important and not to be underestimated so the umbrella will keep you safe (if, of course, you pick a good one...) for the interim

Remember you will be paid by the days you work, so no work is no income. That includes holidays, bank holidays, sickness, weekends and enforced periods such as Christmas. If you earn 250 days a year, as opposed to 365, you will be very lucky.

The time to go to YourCo will when you do properly understand the issues and have some savings to cover the gap between work and non-work.

[stit]

It's an outside gig. Was going to suggest Ltd, but seems like OP is hoping to be made permanent after a few months...... different folks, different strokes.

I can also recommend Clarity if you decide Umbrella is best for you.

Thank you everyone for your kind suggestions.

Since it is outside, it is very tempting to go Ltd. But, I am not very sure if I want to do it for long term. If I can and I like it, I would like to be Outside and continue the Ltd. I am actually not hoping to me made permanent. It is just their offer. It may be I would want to continue contracting with them or change to someone else.

So, I have these options:

1. start an Ltd company right away. See how it goes.
   1. carry on with it for long term - if it works well (I am comfortable working, able to get new contracts etc, no legal issues or more awareness about it)
   2. close Ltd after few months if I am not comfortable carrying on (and may be switch to perm or umbrella). Will it be an issue if I close down a company so quickly from HMRC perspective? What If I move out of UK after an year or so?
2. go via the umbrella. Try for a month or two.
   1. Carry on with the umbrella
   2. Or, open an Ltd and switch from umbrella.

Appreciate your time and support as always.

[jamesbrown]

Sorry but I can't see how anyone can say under the new rules that a contract which turns into a permanent job is outside IR35.

Or ever was, for that matter. Either crossed wires or a stupid client/supply chain or they don’t really care because they think they can pass down any liability. Regardless, the OP is right to go umbrella.

[eek]

It's an outside gig. Was going to suggest Ltd, but seems like OP is hoping to be made permanent after a few months...... different folks, different strokes.

I can also recommend Clarity if you decide Umbrella is best for you.

Sorry but I can't see how anyone can say under the new rules that a contract which turns into a permanent job is outside IR35.

[Whitelime]

Different umbrellas have different pension offerings so depends what's important but IMO it's not a deciding factor. You can transfer a pension just by filling in a form on Avivas site and inside gigs are only temporary so it's not the end of the world.

I'd second Clarity Umbrella as well.

It's an outside gig. Was going to suggest Ltd, but seems like OP is hoping to be made permanent after a few months...... different folks, different strokes.

I can also recommend Clarity if you decide Umbrella is best for you.

[northernladuk]

Thank you.
What are some of the things we need to opt for when signing up with an umbrella company? Like pensions etc that we have to decide initially?
I have my pension with Aviva. What happens to it?

Different umbrellas have different pension offerings so depends what's important but IMO it's not a deciding factor. You can transfer a pension just by filling in a form on Avivas site and inside gigs are only temporary so it's not the end of the world.

I'd second Clarity Umbrella as well.

[stit]

In which cases the consensus here will be to speak to Lucy at Clarity Umbrella (link added to avoid confusion with Clarity Contractors who we can't recommend)..

Thank you.
What are some of the things we need to opt for when signing up with an umbrella company? Like pensions etc that we have to decide initially?
I have my pension with Aviva. What happens to it?

[eek]

I am joining work after few years of break and luckily got an outside IR 35 contract offer. I was always on a permie before the long break.
The company wants to try contracting for few months and if they are happy they would like to hire as permanent.

Since this is the first time I am going contracting way, I am opting to go through an umbrella company. The recruiter referred to one of the umbrella companies and they told me 'we(recruiters) do not get any commission from the umbrella company and you are free to select any others as well'.

Please could experts here advise me here on how do I check if this is the right company, what are the details I need to watch out for etc. Are there any specific umbrella companies that are best suited for some newbies ?
I am also looking at the online resources and other posts on this forum but hoping answers here also will help me to find the needle in the haystack.
Many thanks.

In which cases the consensus here will be to speak to Lucy at Clarity Umbrella (link added to avoid confusion with Clarity Contractors who we can't recommend)..

[stit]

I am joining work after few years of break and luckily got an outside IR 35 contract offer. I was always on a permie before the long break.
The company wants to try contracting for few months and if they are happy they would like to hire as permanent.

Since this is the first time I am going contracting way, I am opting to go through an umbrella company. The recruiter referred to one of the umbrella companies and they told me 'we(recruiters) do not get any commission from the umbrella company and you are free to select any others as well'.

Please could experts here advise me here on how do I check if this is the right company, what are the details I need to watch out for etc. Are there any specific umbrella companies that are best suited for some newbies ?
I am also looking at the online resources and other posts on this forum but hoping answers here also will help me to find the needle in the haystack.
Many thanks.