variable rate contract and umbrella companies

[berkleyn]

I've been offered a new contract which is atypical in as much as the work is piece-meal and the amount paid will vary according to the piece of work. Therefore, I will not have a fixed hourly or day-rate. I have used umbrella companies in the past so was planning on doing so again, but have been told by two umbrella companies that they cannot handle this type of contract. I am unclear whether this is to do with their systems, or whether there is a legal issue, as this was alluded to. Can anyone advise whether there is an option to use an umbrella for this type of contract or whether my only option is to go down the limited company route. Thanks in advance.

[geoff from contracta IOM]

I've been offered a new contract which is atypical in as much as the work is piece-meal and the amount paid will vary according to the piece of work. Therefore, I will not have a fixed hourly or day-rate. I have used umbrella companies in the past so was planning on doing so again, but have been told by two umbrella companies that they cannot handle this type of contract. I am unclear whether this is to do with their systems, or whether there is a legal issue, as this was alluded to. Can anyone advise whether there is an option to use an umbrella for this type of contract or whether my only option is to go down the limited company route. Thanks in advance.

If you would like to contact me I may be able to help but it would require you registering as self employed, the contracting party agreeing and you providing some evidence to me of the income being declared in full to HMRC. You would not have to engage with a trust in any way if you do not wish to.
The issue for traditional umbrella companies i believe is the AWR and their obligations regarding pay between assignments ect.

[LisaContractorUmbrella]

I've been offered a new contract which is atypical in as much as the work is piece-meal and the amount paid will vary according to the piece of work. Therefore, I will not have a fixed hourly or day-rate. I have used umbrella companies in the past so was planning on doing so again, but have been told by two umbrella companies that they cannot handle this type of contract. I am unclear whether this is to do with their systems, or whether there is a legal issue, as this was alluded to. Can anyone advise whether there is an option to use an umbrella for this type of contract or whether my only option is to go down the limited company route. Thanks in advance.

Hi berkleyn

When you say the work is piece-meal - what do you mean exactly? Do you have another job and you are doing this work on the side or is it a full time contract just with variable hours?

[berkleyn]

variable rate contract/unbrella

Its a part-time contract, with work assignments (e.g may be 3-5 hours work) randomly given to me. Each piece of work will vary and so will the fee.

[LisaContractorUmbrella]

Its a part-time contract, with work assignments (e.g may be 3-5 hours work) randomly given to me. Each piece of work will vary and so will the fee.

In that case, an umbrella company is not the best option for you - do you have the option to be paid direct by the agency? I don't know what the accountants on the board would recommend but IMHO a Limited Company would not be the way to go either

[Clare@InTouch]

A limited company could be an option, but it depends on the level of income. Really, it's only worth it if your annual income is going to exceed around £30,000.

How about self employment? A lot of agencies won't allow it, but if you can contract direct with the client then it may be an option. It's better than PAYE as you'll save a bit of NI, plus it's then just a case of preparing a tax return each year.

[simondolan]

I've been offered a new contract which is atypical in as much as the work is piece-meal and the amount paid will vary according to the piece of work. Therefore, I will not have a fixed hourly or day-rate. I have used umbrella companies in the past so was planning on doing so again, but have been told by two umbrella companies that they cannot handle this type of contract. I am unclear whether this is to do with their systems, or whether there is a legal issue, as this was alluded to. Can anyone advise whether there is an option to use an umbrella for this type of contract or whether my only option is to go down the limited company route. Thanks in advance.

If the contract is with an agency you will have no choice but to go Ltd (assuming brolly is off the agenda) - they can't deal with self employed people

[geoff from contracta IOM]

If the contract is with an agency you will have no choice but to go Ltd (assuming brolly is off the agenda) - they can't deal with self employed people

We can

[LisaContractorUmbrella]

We can

Not if the OP has secured his contract through an agency

[prozak]

Not if the OP has secured his contract through an agency

Yes they usually can.

Geoff's structure is likely to have a company in-between the agency and self-employed person.