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Umbrella Companies

First timers Contents:

^ TopWhat is an umbrella company?

What are umbrella schemes for contractors
Explains what umbrella companies are and how contractors use them.

Limited company or umbrella – deciding on a payment structure
First time contractors have two options for setting up a payment structure: Limited company, or umbrella company. This article discusses the differences between the two and gives practical advice on which option to choose.

What is a PAYE umbrella company?
Explains how a PAYE umbrella scheme works.

Contractor umbrella companies and their contractors’ employment rights
Contractors who work through an umbrella company can have the same employment rights as permanent employees, confirms Derek Kelly of Parasol.

Umbrella companies: Common questions and issues explained
Contractors like to stay on top of their careers but can be misinformed. Lesley Sweetman from Parasol exposes the top myths about umbrella companies.

What contractors should do if their umbrella company goes bust
Contractors must protect themselves up front and move on if their umbrella company goes bust, say Parasol’s Rob Crossland and ClearSky’s Derek Kelly.

^ TopChoosing and setting up under an umbrella company

Choosing an umbrella services company
This article discusses the many factors to consider when choosing an umbrella company to use.

Contractor umbrella companies: find true costs with ContractorCalculator’s checklist
Contractors can use ContractorCalculator’s umbrella solutions provider checklist to help them ask the right questions when choosing a service provider

Counting the true cost of a contractor umbrella company – contractor checklist
Contractors can use ContractorCalculator’s checklist to spot the hidden costs in advertised umbrella company fees, says Parasol’s Rob Crossland.

Best umbrella company – 10 tips for contractors to choose
Contractors inside IR35 and unsure of how long they will be contracting could find a PAYE umbrella company solution is their best option.

Joining a contractor umbrella scheme
This article discusses the steps you need to take to join a contractor umbrella scheme.

Contractors can check their PAYE umbrella company is financially sound – here’s how
Rob Crossland of Parasol explains how contractors can check that their umbrella company is safe to use and won’t leave them out of pocket.

Can a recruitment agency force contractors to use its affiliated umbrella company?
Agencies sometimes try to insist on contractors using their recommended umbrella companies, but not always in the interest of their contractors.

Does choice of umbrella significantly affect take home pay?
Does it make any significant difference which umbrella company you choose in terms of final take home pay after tax?

How do umbrellas calculate contractors’ national insurance
When contracting inside of IR35, employer's National Insurance contributions are calculated on the gross income billed to the client.

Umbrella contractors and emergency tax codes
Contractors new to an umbrella company can pay more tax than they need to, but this does not have to be the case, as Derek Kelly of Parasol explains.

Umbrella companies, IR35 compliance & HMRC approval – contractors should be cautious
Contractors should beware of umbrella companies claiming IR35 compliance, HMRC approval & special dispensations – they are not being entirely open.

Pension auto-enrolment for umbrella company contractors explained
Contractors working via umbrella companies will be automatically enrolled into a pension scheme but can opt out, explains Parasol’s MD Derek Kelly.

Contractor guide to understanding umbrella company payslips
Contractors receiving their first umbrella company payslip may benefit from help to understand the calculations, says Chris Futcher of Pulse Umbrella.

^ TopExpenses and dispensation

Umbrella companies – the three main tax models available for contractors
The Contractor umbrella market is segmenting in response to recent changes in legislation with three main models now being used.

Umbrellas, HMRC, and dispensation agreements
How the HMRC views Umbrella Companies and an explanation of dispensation agreements

Dispensation and why contractors cannot claim expenses without receipts
Explains the Inland Revenue expenses rules, what an Inland Revenue Dispensation agreement means, and why you cannot claim without receipts.

Can contractors claim expenses without receipts?
Contractors using umbrella solutions often ask potential suppliers how much expenses can be claimed. But do these expenses need receipts?

Why won’t my umbrella let me claim expenses during my notice?
Parasol’s Rob Crossland explains that different expenses rules come into play when an umbrella contractor gives notice, over-riding the 24-month rule.

Contractor guide to the VAT treatment of umbrella expenses incurred in the Eurozone
VAT treatment of umbrella company contractors’ expenses in euros shouldn’t leave contractors out of pocket, explains Rob Crossland of Parasol.

How umbrella company contractors can calculate their holiday entitlements and pay
Umbrella company contractors can work out their holiday entitlement using a standard calculation, explains Pulse Umbrella Group’s Chris Futcher.

How umbrella company contractors calculate holiday pay when on maternity leave
Umbrella contractors can find claiming holiday pay on maternity leave complex, but it does not have to be, says Pulse Umbrella Group’s Chris Futcher.

Umbrella contractors can still claim travel and subsistence – here’s how
Umbrella contractors can continue to claim T&S expenses without making excessive admin demands of their firms, thanks to a new SDC testing solution.

Contractor T&S changes: Who is liable for unpaid tax and NICs?
Umbrella companies needn’t worry about incurring tax for falsely processing T&S expenses for contractors, thanks to a new SDC testing solution.

Umbrella contractors can’t open limited companies to claim T&S relief
Umbrella companies don’t have to consider adopting risky operating models to continue processing contractor T&S, thanks to a new SDC testing solution.

^ TopIR35 issues

Umbrella companies and IR35
Explains the umbrella options with respect to IR35, and whether IR35 can be avoided using an umbrella scheme.

^ TopMoving: Ltd Company to Umbrella

Moving from a limited company to an umbrella: reasons and practicalities.
Discusses the many reasons you might have for wishing to move together with practicalities of moving.

Closing down your contracting limited company
Discusses the steps to close down your limited company

Making your contracting limited company dormant
How to make a limited company dormant and the responsibilities whilst it is dormant.

Do I have to pay employers and employees NI when using an umbrella?
The amount of NI contributions you pay depends on your IR35 status and how you decide to structure your financial affairs.

Changing your contractor umbrella company
Contractors may decide to change their umbrella company for a variety of reasons. As Rob Crossland from Parasol explains, contractors should be aware of the implications and plan their move accordingly.

^ TopMoving: Umbrella to Ltd Company

Reasons and practicalities of moving from an umbrella to a limited company
Discusses the reasons and steps to take to move from an umbrella arrangement to a limited company.

Setting up a limited company
This article discusses the practicalities of setting up your own limited company to use as a payment structure whilst contracting.

^ TopUmbrella Interviews

Interview with umbrella company parasol it
Interview with Rob Crossland, Service Director of Parasol IT Plc about his umbrella company and the practicalities and benefits of moving to an umbrella solution.

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