Payment through umbrella company

Discussion in 'OT (OFF Topic) Forums' started by marty359, Mar 27, 2014.

  1. marty359

    marty359 Hardcore MB Enthusiast

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    Can anyone help me with this?


    I'm an Electrician who has been employed PAYE with a company van for over 15 years.

    I've been offered a new electrical job through a recruitment agency working for a nationwide company but I have to supply my own vehicle and fuel, I like the sound of the new job so i'm going to accept it but.....


    I've spoken to the tax office and I can be registered as self employed and it takes up to 6 weeks to obtain my unique tax reference number. Being CIS they stop 20% and I can claim for fuel, clothing etc

    The recruitment agency have told me about receiving payment through an umbrella company ( I asked tax office about this but he'd never heard of it) where I can offset my tax weekly?? for a fee of £19 a week they sort out all my tax and national insurance and it includes public liability insurance too.


    Anyone been paid through an umbrella company before? Can you still claim expenses? I think I'd rather just go down the CIS route where they take 20% and I get an accountant again.

    Any benefits of getting paid through an umbrella company?

    I'm full of cold and this is giving me a headache :(
     
  2. IanA2

    IanA2 Hardcore MB Enthusiast

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    Speak to an accountant. You'll have to set up a Ltd company, but even with accountant's fees, filing fees etc, the tax breaks make it well worthwhile.

    HTH.
     
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  3. guyvert1

    guyvert1 Hardcore MB Enthusiast

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  4. IanA2

    IanA2 Hardcore MB Enthusiast

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    Certainly look at UC's, but do be aware that you will have greater flexibility, more control, and probably more money if you go down the ltd co route. UC could be a solution if you want things done very quickly. That said I don't think it would take too long to sort it out with an accountant. I'd recommend my accountant, he's well versed in this stuff but he's just retired.
     
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  5. Meldrew2

    Meldrew2 Hardcore MB Enthusiast

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    I did this for several years - as a Ltd company - the tax advantages were good.

    Ask a Chartered Accountant for advice. A Ltd co can be formed very quickly these days.
     
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  6. Mat B

    Mat B Hardcore MB Enthusiast

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    I use a company called amber pay who deal with all my self employed people.

    They will happily explain all the options open to you

    01624 815189
     
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  7. OP
    OP
    marty359

    marty359 Hardcore MB Enthusiast

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    Thanks for the replies. I've spoken to an accountant and now is all clear....ish.

    I'm going down the umbrella route for now and may switch when I've been there a while and i'm settled.

    Thanks for all the input :thumb: I hope this job turns out to be as good as it sounds.
     
  8. gaz_l

    gaz_l Hardcore MB Enthusiast

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    Good luck with the new job Marty, I handed in my notice 18 months ago after 24 years with the same company. A bit scary at the time but I love my new job so it really was a good move for me.

    Cheers,

    Gaz
     
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  9. Jim G

    Jim G Hardcore MB Enthusiast

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    I'm also a Sparky mate, worked for companies for years, then I went through an agency to work for a friends company so I set up a limited company for tax purposes.

    It was the best thing I ever did, you can put everything in one basket your everyday work and evening + weekend work for yourself, work hard and watch yourself/ your company grow.

    10 years on I now have a successful electrical contracting business.

    Good luck mate, remember some of the biggest + best steps that you'll take in life start out as the scariest.
     
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  10. John

    John MB Club Veteran

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    Good luck with it Marty...
     
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  11. Darrell

    Darrell Hardcore MB Enthusiast

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    I did the same in 1988. I was 21.

    A few ups and downs but the best move ever. Some of the guys I worked with at that time are still on the cards regretting it and are so envious.

    It paid for our new life in Skiathos.
     
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  12. Simon_M

    Simon_M Hardcore MB Enthusiast

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    Just be careful with Umbrella's - they can offer great things and tell you many things can be tax free. HMRC may think differently and the paperwork you sign will absolve the Umbrella of any liability.

    Also check the payment terms between the client and the umbrella, and you and the umbrella.

    S
     
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  13. IanA2

    IanA2 Hardcore MB Enthusiast

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    Which is why you are better off with a ltd co and an accountant.
     
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