subject: Have You Considered Freelance Contracting? [print this page] Have You Considered Freelance Contracting?
Freelance Contractors Set Free
Temporary workers, freelance contractors and interim managers have something you don't have. Freedom! The lifestyle is worlds apart from being a permanent employee.
The key to successful contracting is deciding whether to:
Set up & run your own limited company
Use the services of an umbrella company
Biro or Quill Pen?
If you like excel spread sheets and have an accounting background, you might want to think about setting up your own limited company. You'll have to raise invoices, deal with HMRC and keep proper & correct records of all activity to do with your company.
If you're like most contractors you'll probably prefer the easier option provided by an umbrella company. The umbrella company does all your paperwork and looks after the administration.
Not only will you be hassle-lite you will even be better off. An umbrella company can increase your net pay!
Down With Taxes!
Temporary workers who use an umbrella company can off-set some of their tax liabilities by claiming for business expenses.
The better umbrella companies have a team of expert tax advisors on hand. They can make sure their contractors know exactly what expenses can be claimed. This means they will take home the maximum net pay legally allowed by HMRC.
Ready Made Ready-To-Go
An umbrella company offer self-employed workers a ready-made limited company. You can have one or multiple contracts, and all the red-tape and paperwork will be done for you!
The best bit? You only pay when you're working! No contract no charge.
Save Time Save Worry
The real benefit from using an umbrella company is the contractor saves a lot of time and worry on all the complex administration associated with running a limited company, including:
Processing timesheets
Understanding business expenses
Raising invoices in the correct manner
Credit control
Calculating tax and National Insurance
Collecting payments from the recruitment agency or end client
Handling legal contracts
General paperwork and filing
Staying up to date with ever changing legislation
You even get holiday and sick pay!
And there's more, umbrella companies also give the contractor access to other benefits not otherwise readily available: pension schemes, private healthcare, life and critical illness insurance and childcare vouchers.
Happy Days
Umbrella companies include Employer's Liability and Public Liability insurance cover within the fixed price, and most include Professional Indemnity Insurance. No worries in the event of any legal cases being brought against you in respect to the services you provide to your clients.
Registering with an umbrella company, you become an employee of the umbrella company, while keeping the flexibility to find and choose your own work, clients, rates, terms and conditions.
Umbrella companies are the simplest way for contractors to trade whilst reducing their tax bill to the lowest possible level.
An umbrella company is for today's modern contractor who has better things to do after a hard day's work than sit in front of a computer and struggle with spread sheets, forms and figures.
Your Choice
One of the best ways to find the right umrella company is by visiting ContractorSupermarket. There you will find the top 100 umbrella companies in the UK, each one rated and ranked by their own customers.
Don't forget to check out the 2011 Umbrella Company Reader Awards.
