How Umbrella Companies Can Support Your Contracting Beginnings
Regardless of your reasons for entering the contracting world or your past experiences, the beginning of contracting is one of the most important parts. As it can set up how your business will unfold in the future. Taking time to lay the structure of your business is vital to a successful career in contracting.
Brookson delve into how Umbrella companies can help you get on your feet and stay there when working as a contractor.
When starting out as a contractor you’ll have the option of taking on a lot of responsibility, from filling out tax paperwork at the end of the financial year to keeping up to date on the latest in contractor legislation. Some people would much rather slowly learn their new contracting role without taking it on all at once. When you compare Umbrella vs Limited companies, then you’re taking on far less responsibility for an increase in costs per month.
Umbrella companies are there for that exact reason, to help you work as a contractor yet take out a lot of the administration work. Umbrella companies work much like typical employers, you fill out timesheets and are paid by the umbrella company when they are paid by the client for your work. This allows you to spend your spare time on leisure, rather than running your own personal business.
When starting out as a contractor you want it to be a smooth ride and not to be dumped straight into a role where you’re not too sure what to do.
During your contracting beginnings and throughout your career, there’s quite a bit of risk when it comes to job security. You can’t always rely on work from clients to come in and you could be working a lot for a few months and then have a large gap thereafter. It’s important to plan ahead and ensure that you’re financially stable across the entire year.
Umbrella companies are beneficial in reducing risk as they’re very similar to PAYE employers, you will always get paid the national living wage, regardless of your situation. So if you’re unsure how you workload is going to look in the coming month, you can sleep safe in the knowledge that your umbrella company is there to back you up.
Other types of risks include strict codes of conduct in the financial world, where if you breach these rules, intentionally or not, you face hefty tax increases. Legislation such as IR35 are easily breached if you’re new and running a Limited company so it’s important to have expert advice on hand at a moments notice. Umbrella companies all must adhere to these strict rules and will have years of knowledge and experience in these strict rules. Releasing you of the need to keep up to date with ever changing financial laws.
Get in touch with a specialist contractor accountant that can help you in regards to Umbrella companies today, such as Brookson!