IR35 legislation changes are impending. Countless contractors have to assess their options, whether to work under an umbrella company or start a limited company.

Reduced take-home pay is predominantly one of the main reasons that put contractors off using an umbrella company. However, there are many positives to working under one. This blog will look at our top benefits for using an umbrella company, such as Unique Payroll.

So, what are the benefits?

• There’s practically no administration, allowing you free time to offer an efficient service to your entire client base
• An umbrella company operates via PAYE. Meaning you will pay all of your tax as you go along, the exact same as a permanent employee
• For the most part, umbrella companies are easy to get to grips with. You have to send in a timesheet and can sit back and wait to get paid to your agreed timeframe
• It doesn’t matter if you’re on a short-term or long-term contract. Using an umbrella company works for both
• We offer a sleep easy service, so you can relax knowing all the legalities and all of your taxes have been taken care of (a little more on that later)
• The world of contracting or freelancing can be pretty daunting for anybody looking to offer that as a service. An umbrella company is a safe stepping stone for first-timers. If you’re dipping your toe into new waters, an umbrella company can help with it being too overwhelming
• There’s no need to file a self-assessment form every year, unlike limited company directors (unless you earn other untaxed income)
• Umbrella companies will have a dedicated department for getting you all of your money in on time (minus fees)
• Setting up a limited company can be a lengthy process, but when working via an umbrella company, the sign-up process will be completed within a matter of hours, so you can get to work quicker
• Umbrella companies offer you more freedom to manage and progress your business strategy without being indefinitely tied to one company or client

There are no concerns about being caught out by IR35
Unique Payroll has actively looked to educate as many people as possible on the impending changes. HMRC created the legislation to identify contractors or freelancers who were ‘disguised employees.’ Look at one of our previous posts found here to find out more.

But, by using the services of an umbrella company (regardless of your IR35 status), you become an employee of the umbrella company, which takes care of paying your PAYE, National Insurance Contributions (NIC), and all of your tax due from the company you’re doing work for. They’ll minus fees, and you’ll be paid the rest. Using (a compliant) umbrella company will leave you in good stead with HMRC, with nothing to worry about.

Our specialist team is here to help however we can. If you require any more information or some guidance on picking the right umbrella company. Call us on 01473 461 028 or by visiting https://uniquepayroll.co.uk/.