I've been having a look at some of these umbrella services for managing some off-freelance-bid-site payments. What are your thoughts about using services like this? Is it really for those who only just squeeze under the IR35 regulations? Since I keep accurate accounts, have a DD set for NI and pay my tax on time (and will be needing an accountant to sort out the finer details like equipment etc), I'm not convinced that I need to pay someone else to do it for me and I'm somewhat reluctant to do so. Especially since the fees don't appear to reclaimable as business expenses (unless I've read it wrong!) Anyone got any thoughts?
Hey Sharp Clause, Stay away from the umbrella I reckon!! If you are managing OK as self employed then I see no reason to use these firms. You can raise your own invoices so why would you need these guys? What bid for job sites are pushing them? Let's have a butchers! Yes, umbrella's are best really for those caught by IR35 and those in short-term freelancing roles. Out of interest why have you gone self employed rather than start up own Ltd Co?
Hi there Chubba! Here's one I've found - people4business - Bringing buyers & sellers together in People4Business. I've just been scouting around looking for a range of bid-for sites so I can build up some more financial cushioning while I'm sending out my own stuff to mags etc. Plus it gets me used to writing at speed - all a useful learning curve. Interesting too - the stuff one gets to write about! lol Umbrella companies - hmm that was rather my thought - that I don't really need them as I keep accurate accounts. hmmm I've only recently launched into self employed full time - and I hadn't really considered Ltd Co as I didn't really know much about it. Dont know any freelancers! Til now of course I'm having a think though, as it does look like an extremely sensible option. I've got a free course booked with the Revenue in January for people just starting out on their own. I'll have a wodge of questions .. but I'll look into it a bit more before then. Thanks for the nudge!
Ltd CO I now trade through my own Limited Company. Is easy enough to do, albeit more admin than when I was self employed, but I do pay quite a bit less tax and NI. I do use an accountant as I don't think I could handle it on my own
I have recently used an Umbrella Co. Heathcote Services who have set me up with my own ltd company and take care of all admin and accounting for me. It does cost a little more than being self-employed but I don't have to worry about accounts etc as the guy who runs it is a qualified accountant anyway! As long as you avoid an umbrella using a composite scheme you should be fine.
Thanks so much for the tip AJ I'll definitely be looking into this in the New Year. All useful information everyone. Thanks very much.
