Umbrella vs Ltd Company
Using an umbrella company simply means we remove the hassle and the responsibility of running your own limited company along with the legislative nightmare of being self-employed.
We communicate with the agency or end client on your behalf, arranging the agreements and other paperwork so you can get on with your assignment.
When it comes to invoicing, we take your timesheets and raise an invoice for the agreed value and send it to the agency or end client. We handle the entire process of chasing payments and collecting money that is due. Remember, you get paid whether or not we have collected on the invoice.
You can submit your allowable expenses (we will give guidance to you on what you can and can’t claim) and these will be removed from your taxable income before you are paid through PAYE. This means you get to take home more of your earnings.
Being a full employee of Brolii, your tax and national insurance obligations are handled by us and worrying about IR35 and MSC legislation is a thing of the past. You will also benefit from our comprehensive insurance package including employers liability, public liability and professional indemnity insurance.
Starting up and running your own limited company sounds great and it can result in higher returns after tax but you must bear in mind are all of the responsibilities which come with running your own company.
Are you prepared to spend hours of your time sorting out your VAT returns, corporation tax returns and become a part time book-keeper?
Do you really want to spend money getting contractual documents written up in a comprehensive and compliant way to ensure you are definitely classed as self-employed?
Can you truly say that you a self-employed in the eyes of HMRC? If you are deemed as employed, due to your contract and working practices, you will be liable for all of the underpaid tax and national insurance along with fines that HMRC will levy. For more guidance on your employment status, check out our guidance on IR35 and MSC.
If you would like to find out more, please Contact Us Here