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Umbrella Company Benefits
There are many benefits to using an Umbrella Company over going into business with a Contractor Limited Company. If you would like to discuss your individual contracting circumstances call Commonwealth Contractors now on 0800 294 4388 or Submit your details and we will get right back to you.Minimal Administration
By using an Umbrella Company you can vastly reduce your day to day administration when compared with running your own Contactor Limited Company. With an Umbrella Company solution all you have to worry about is sending timesheets and expenses, everything else is done for you. There is no need to worry about completing annual returns, preparing and submitting annual accounts, paying VAT or PAYE etcClaim Business Expenses
An Umbrella Company will normally allow you to claim business expenses incurred during the course of your contract assignment. Expenses normally include Hotel/B&B expenses where an overnight stay is required at a contract site, site based travel expenses, site based subsistence expenses, business postage and stationary etc.Business expenses are reimbursed out of contract income tax free meaning that the more expenses you legitimately claim the greater your net take home pay will be.
Concentrate on your career
As pretty much everything is taken care of by the Umbrella Company you can forget about admin and concentrate on your career. Instead of taking time each month to complete business related admin in order to squeeze a bit more out of your contracting rate you could complete more hours on site or train in the latest cutting edge skill. By focusing on your career you could find that your contracting options and contract rate increase.Actual Income displayed
With a Limited Company you will no doubt set a low salary (seen as artificial) of around £12k and take the remainder of contract income in the form of dividends. This may be great in terms of saving some National Insurance but you may find it very difficult to prove income when it comes to applying for a loan, mortgage or Tier 1 (HSMP). You may find that you will need to gain at least 2 years audited accounts before a provider will consider you.With an Umbrella Company all contract income is received as salary with the exception of business expenses which are reimbursed tax free. This means that your payslips reflect your actual level of income.
Professional Insurance Included
As an Umbrella Company is a ready made structure it will already have in place Professional Insurances either required by law or by the terms and conditions of any contract assignment. Professional Insurances normally include Professional Indemnity, Employers Liability and Public Liability Insurance.If you go into business with your own Contractor Limited Company you will be required to pay for suitable Professional Insurance Cover
