Are you inside IR35 and unsure what to do?
An inside status determination doesn’t mean you’ll have to reject the contract or go permanent, and working under an Umbrella company could be the best option for the duration of your contract.
So what does an Umbrella company actually do?
The Umbrella creates an overarching contract of employment between yourself and the end-hirer / client, therefore you effectively become an employee of the Umbrella. They then deal with paying your National Insurance Contributions (NIC), PAYE and correct tax due, along with taking their fee from your gross pay, so your take home pay is then what’s left – your net pay. They also liaise directly with invoicing the end-hirer / client on your behalf.
Whilst working under an Umbrella will mean you won’t be entitled to the same tax benefits as you would be if you were ‘outside’ IR35 through your Limited Company, you’ll still be able to contract confidently, knowing that absolutely everything has been taken care of on your behalf by your chosen Umbrella. Plus on the positive side, now that you’re classed as an ‘employee’ you’ll now be entitled to sickness, holiday, maternity and paternity pay!
How can SG help?
He at SG we offer the best of both worlds, with the ability to use our Limited Company accounting services with SG Accounting when ‘outside’ IR35, then switch over to SG Umbrella when your contract commands it. Regardless of which service you’re using, you keep your trusted accountant, your Limited Company would keep running in the background ready for your next ‘outside’ IR35 contract, and your accountant will have complete visibility over your finances, both for when contracting under the Umbrella and through your Limited Company.
Find out more today on what we can offer you, and how our Umbrella services are here whenever you need them. SG – helping you navigate IR35 by making it as simple as possible.