It’s a tough market for job-seekers, and continuing reports of a lack of employment opportunities coupled with rising redundancies can make the future look bleak.
Working as a contractor or a temporary worker is one way to help beat the recession blues, by taking your employment prospects into your own hands. However, there is no denying that it can be daunting, especially when it comes to sorting your finances and paperwork. An Umbrella Company can provide you with payroll and employment services, acting as a contractor accountant and taking over some of the administration obligations that you would otherwise be responsible as a sole trader or self-employed individual.
When you join an umbrella payroll you become a flexible employee, making you eligible for benefits such as paternity/maternity pay and holiday pay too. At the same time you will be able to retain some of the great benefits of working as a contractor, such as greater autonomy over where and when you work, as well as developing your own brand and offering your own unique service.
Bringing together a group of contractors underneath a single employment umbrella, joining an umbrella payroll can provide you with the some of the benefits of a limited company without all the hassle.
As contractor accountants, Umbrella Companies can be very valuable indeed. Getting onto an umbrella payroll can increase the tax efficiency of your earnings, enabling you to get tax relief on some expenses, reducing your costs in the long run. This is a benefit you would not find if you were taken on to an agency payroll.
An umbrella company will deduct any taxes directly from you pay and make sure it goes straight to HMRC and allow you to avoid the implications of IR35 or MSC legislation.
You will have to pay a fee to enjoy the benefits of joining an Umbrella Company, usually a small amount per week during periods of work. How much this fee is will depend on the Umbrella Company you choose to operate with, with a wide range of providers available.
It’s proved to be a tough start to the decade for employment opportunities, but as employers cut back on permanent staff it may prove to be a window of opportunity for contractors, as demand for temporary services may rise quickly. Working as a contractor can give you peace of mind that redundancy is not on the cards, operating alongside an umbrella company could prove to be an unbeatable combination.