Agencies and Companies that use Contractors are reluctant to pay you for your time unless they receive a valid tax invoice. This is because if they are deemed to have paid someone who should have been an employee then they can be penalised for the PAYE and National Insurance you should have paid if you had been an employee. You are therefore required to either set-up your own Limited Company or become part of an Umbrella Scheme (which clarifies your employment status). By joining Umbrella you become in effect an employee of Umbrella which clarifies your status.
IR35 is Government legislation relating to Intermediaries introduced on 6th April 2000 in the Finance Act 2000. It was introduced to stop Contractors avoiding tax and National Insurance through the use of Intermediaries such as Personal Service Companies or Partnerships. Historically people saved National Insurance contributions by drawing out "wages" via a dividend. IR35 ensures you pay tax similar to what you would pay if you were employed rather than being a contractor.
This is 2014 legislation which seeks to more clearly define employment status. The objective is to ensure that employees cannot use a self-employment payment vehicle which is inappropriate to their role thereby incorrectly avoiding taxation. Please ask us for more information if you are self-employed and have any doubts about whether your employment status is appropriate.
Our experienced New Business Advisors will listen to your circumstances and ask you about the role you will be undertaking. We will then offer what we believe to be the best solution. We will ensure that we do not offer a solution which might put you at risk of contravening IR35 or the False Self-Employment Legislation.
We believe we offer a fast, efficient and reliable service which is good value for money and fully HMRC compliant.
We offer a personal service with individual account managers who treat you as an individual. See our testimonials here : http://www.umbrella.co.uk/testimonials.html
We offer a PAYE umbrella service which is fully HMRC compliant. We also offer a set-up and accountancy service for your own limited company outside of IR35. We offer a consultation service to enable you to decide on the solution that is the best fit for you.
No. We provide Professional Indemnity Insurance with cover up to £5m, Employers Liability £10m and Public Liability £5m. If your contract requires additional insurance to this please ask your manager and we can help arrange this for you at competitive rates.