Umbrella schemes

sharoneyre
sharoneyre Registered Posts: 28 ? ? ?
does anyone have any experience of umbrella schemes -how they work etc

Comments

  • Jo Clark
    Jo Clark Registered Posts: 2,525
    Hello

    I don't personally, however on page 53 of the September/October Accounting Technician there is a very small article titled 'from the forums' (this forum) where Geek84 asked a similar question.

    I would recommend a search on the forum for umbrella schemes and Geek84.


    JC :o
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • sharoneyre
    sharoneyre Registered Posts: 28 ? ? ?
    That's what started me looking on here -I saw the article and couldn't find anything when I searched, I have a client coming on board that is in one and I don't have much knowledge of them

    Thanks
  • sharoneyre
    sharoneyre Registered Posts: 28 ? ? ?
  • reader
    reader MAAT, AAT Licensed Accountant Posts: 1,037
    sharoneyre wrote: »
    That's what started me looking on here -I saw the article and couldn't find anything when I searched, I have a client coming on board that is in one and I don't have much knowledge of them

    Thanks

    That wikipedia page provides a very good description of umbrella companies.

    I deal with a lot of umbrella companies, contractors within IR35 and contractors outside of IR35.

    Is your client thinking of leaving his/her umbrella company and going limited? If so, they should get their contract reviewed by IR35 experts, e.g. Bauer & Cottrell, Qdos, etc.
  • Suejw
    Suejw Registered Posts: 39 ? ? ?
    I used to work for an umbrella company, it was for paying contractors, mostly IT back then, the good thing for them was that they got paid weekly/monthly and also got expenses and didn't have to worry.
  • sharoneyre
    sharoneyre Registered Posts: 28 ? ? ?
    hi
    she is currently in an umbrella scheme and looking at going self employed but not as a limited company
  • Lisa ContractorUmbrella
    Lisa ContractorUmbrella Registered Posts: 1 New contributor ?
    Umbrella company

    An umbrella company acts as an intermediary between a contractor and a recruitment agency/client. The umbrella company will enter into a business to business contract with the recruitment agency/client and the contractor will sign a contract of employment with the umbrella company. Under that contract the worker is entitled to all the same statutory entitlements as any other employee.

    The worker will submit details of hours/days worked to the umbrella company who will raise a corresponding invoice to the agency/client. As with any other UK employer the umbrella company has a legal obligation to pay employer's national insurance and will also retain a margin from the funds received when the agency/client pay their invoice. The balance is the worker's salary which is subject to taxation through PAYE.

    If you are working with a recruitment agency the only options for payment will be to become an employee of the recruiter, to work through an umbrella company or to form your own Ltd Company - working as a sole trader (self-employed) is not an option.

    HTH
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