Do you sometimes feel as if you are drowning in a sea of paperwork? Do you get confused by all of the taxes you have to pay? If so, you seriously need to consider using the services of an umbrella company contractor. This is a company who will technically employ you. They will deal with all of your invoices, paperwork and taxes. The only thing you have to do is submit your timesheet. Keep on reading to discover more about the benefits of going down this route…
One of the main advantages associated with using an umbrella company is that all of the legalities are dealt with. They are experts in this field. They know what taxes you should be paying and what paperwork you need to submit. Thus, there is no margin for error. Laws are changing all of the time and there are big penalties in place for those who do not abide by them. However, you need not worry about any of this, as it is the umbrella company’s duty to take care of it all for you.
An umbrella company will make your life a lot easier as well. All you need to do is submit your timesheet. The company will use ELMO Cloud Payroll and other great tools to ensure everything is processed effectively. This frees up time so that you can focus on what you do best. Dealing with invoices, other types of paperwork, taxes and alike, can be extremely time consuming. If you were to handle this alone you would be haltering your levels of productivity.
One of the key advantages you will reap if you use the services of an umbrella business is that it makes budgeting is made a lot easier. If you were to tackle taxes alone you would need to set aside money for PAYE tax and National Insurance. Considering the former is paid on a yearly basis this is something a lot of people find difficult. However, an umbrella company will pay all of your taxes before they pass on your net profit to you. You never have to worry about being in a situation where you cannot afford to pay your taxes.
If you are only considering working as a contractor temporarily, an umbrella company offers the ideal option. After all, a lot of people who go into contracting only do it as a temporary solution whilst they are in between jobs for example. Are you really going to go to the hassle of setting up a limited company when you have no intention of keeping this company up and running?
When you take all of this into account it is really not difficult to see why so many people are opting to use an umbrella company. There is no real disadvantage. Of course you will need to pay a fee. Yet this is minimal and when you consider the amount of money this type of company can save you, it’s well worth it. The only thing you need to do now is take a look online and find the best umbrella company for you. Don’t be sucked in by those who claim to lower your tax bill – this is impossible. Look for someone offering reasonable fees and boasting a good reputation as well.