How will I get paid as a contractor?
If you are entering the world of contracting for the first time there are a few things you need to consider, looking at Umbrella vs Ltd. Not only do you need to ensure you have everything in place for your assignment but you need to look at how you are going to be paid.
So you have been told that there are a few options available to you; Umbrella vs Ltd. You could choose to open your own Ltd company and trade as a single person, limited company or PSC as they are often referred to OR you could choose to work via an umbrella company. Clarity Umbrella look at these options and provide an insight into which might be the best option to you.
Benefits of operating via an Umbrella or your own Ltd Company
Ideal for short term assignments
Saves on administration hassle as you simply need to submit timesheets
You only pay the umbrella margin as and when you are working
The margin gives you a comprehensive £17m insurance package as standard
Access to the employee rewards package
Full statutory employment rights such as SSP, SMP, SPP
An option for assignments caught Inside IR35
Limited Company (or PSC)
Tax efficient structure
The option where applicable to take salary payments and dividends
The ability to claim business related expenses
Access to pay directly into your company pension via salary sacrifice
An option for assignments that are deemed Outside IR35
If you are still unsure about the route which is best suited to you, then we are more than happy to talk you through your options. You can then make a decision based on the facts.
If IR35 is a deciding factor, then you may wish to consider our “Easy Switch” option. For those who have a Ltd company, or may be considering opening a PSC, with assignments that fall both inside and outside IR35 during the year. Then the Easy Switch option may be worth considering, this allows you to continue running your Ltd company whilst having the option to use umbrella at no extra charge.
The package is offered as a partnership between Clarity Umbrella, who will look after the umbrella company payroll element, and Integro Accounting, who will be your accountancy provider.
Two services, one cost, no compromise!