“I was a permie until the big crisis in 2001, where I got made redundant twice in one year. Nice one financially, but a bit unsettling. So therefore I decided to go solo and start contracting through my own limited company – partly tempted by the freedom, and partly by the increase in earning potential.
What I did find though was that running my own show was a major effort – all the red tape just to get paid. Forever sitting in on Sunday nights filling in VAT return forms, invoicing, tracing payments, arguing about business rates for my garden shed and so forth wore me out – there is absolutely no end to the length the paper-pushers will go to, to make your life difficult.
Then I found Contractor Umbrella, and have never looked back. Now, my administration is constrained to raising monthly invoice, and then happily wait to receive my payslip and the money to go into my account…that’s it!
OK, I make a little less now through PAYE than when I could run the dividend circus, but the upside is that I am completely kosher on tax, and do not risk nasty tax bills hitting me unexpectedly. When I have expenses, for example buying computer equipment, the vigilant Umbrella staff check whether it is OK, and tells me whether it is tax acceptable … much better to have an instant evaluation by someone that knows what they are doing, rather than have a nasty surprise later.
I recently did an estimation of whether using Contractor Umbrella was really value for money, taking into account the fact that all you earn is PAYE taxed. Well, running your own limited costs you time and effort that could have been spent more productively, and you bear the cost of accountancy, liability insurance, business rates when applicable, not to mention Prozac when the letters from the IR arrive. Contractor Umbrella insures you, sends invoices and tracks payment on your behalf, and sorts out your tax. They never fail. In brief, in my case, the balance sheet in financial AND personal terms is much in the favour of Contractor Umbrella – I am much calmer, less worried and stressed, since I started with Contractor Umbrella, and I am confident that I am well looked after.
Fundamentally, going with Contractor Umbrella is a bit like having the freedom to contract with the security of professional administration as you would have as a permie. It’s just better paid than permiedom and excellent value for money.
I have been a delighted user of Contractor Umbrella for over two years now – delighted, because Contractor Umbrella does exactly what it says on the tin and with excellent service and unparalleled reliability. So what does it say on the tin? Well, simply, they take care of all the admin hassle, keep you out of trouble with the taxman, and sorts everything out with a minimum effort from yourself.” Hugo Thomsen 02/11/2007
To read more about the pros and cons of both Limited and Umbrella Companies, please visit Limited or Umbrella.
If you have any questions about contracting or would like any further advice please call Sophie Lewis on 01206 591 000 or e-mail sophie.lewis@dolanaccountancy.com.
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