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kenfrapin wrote:Hi Pyke,
Yes I was referring to Umbrella Companies but No, I have no experience of using one. That said, if you join an umbrella company
1. If you chose the right one, then you have no worries of filing tax returns.
2. The money you get into your account will be taxed accordingly without the need of running around later or being hunted by the tax man.
3. You dont need to setup your own company to contract and all paper work is neat and nice.
1. You are totally Dependant on the umbrella company and their rules
2. You don't control your finances by not having your own accountant
I know just a couple of contractors personally so best if others guide you here. What I do know is these Umbrella companies charge a flat monthly fee for their services. Many leading recruitment firms also act as umbrella companies so there are a lot to chose from. In fact, there are even some good accountants who run an umbrella company for 10 to 20 contractors and this is real advantageous as they device ways of reducing your tax liability.
All I can say is - if I were to ever go down the contracting route, I would choose a smart one and join an Umbrella company, and not dream of the tax man chasing me for filing my tax