An Umbrella Company provides a number of benefits to a Contractor and is an alternative to managing a Ltd Company. 1: Offsetting Legitimate Business Expenses. The main financial benefit of using an Umbrella Company is the legitimate off-setting of business expenses. HMRC has strict guidelines about what expenses you can legitimately offset, and in what circumstances but in general terms, if you are at a temporary place of work, and expect to be there for less than 2 years, then the cost of … [Read more...]
Agencies slash PSCs’ pay rates, insist on umbrellas
PSCs are being blocked from staying as ‘Ltd’ companies and applying IR35 because agencies and public bodies want to head off hassle next month of assessing status and withholding tax. Ultimatums are therefore being sent to such PSCs before April 6th, in essence saying ‘convert to a PAYE umbrella, ignore the less-taxing model of being a PSC inside IR35, or be out of work.’ “The best option for [you/a PSC], with regard to take-home pay, and us [the agency], from an admin and compliance … [Read more...]