What are the benefits of joining a contractor umbrella company?
As contracting has really taken off recently, and especially since IR35 became law in 2000, there has been a increase in the number of contractor umbrella companies. These companies offer the opportunity to be on the CIS payroll, working for a number of different companies at once. You can then take advantage of the payroll services provided by the contractor company, who will handle your timesheets themselves and send invoices to clients on your behalf.
Joining a CIS payroll has a number of advantages. It gives you the autonomy and flexibility that comes with being a self employed construction industry professional, and enables you to be subcontracted to most UK construction companies. Being self employed boasts advantages in itself. You will pay a smaller National Insurance contribution, and will be able to offset certain expenses against your tax liability on your Self Assessment tax return. There is also the bonus of being eligible to work for companies who will not necessarily contract you directly.
It is fairly simple to start working for a commercial contracting company like Liquid Friday, which provides services within the commercial and public sector. You will need to discuss the paperwork that needs to be completed with the company in question. The first step is to register online or fill in the registration forms. This is necessary so that you can be verified with the Inland Revenue. Provided that you are eligible to work in the UK, the process should be able to get started. If you are self employed you will need to send a timesheet, usually fairly early in the working week, so that the appropriate client can be invoiced. When the client approves the invoice, your timesheet will be processed and the money will be transferred into your account. It is important to verify what the insurance policy of the company is, as this is obviously particularly relevant to the construction industry. As a general rule of thumb, you should make sure you are covered by Professional Indemnity Insurance and Combined Liability Insurance.
The benefits, then, of belonging to a contractor umbrella company are surely clear. One of the most time consuming things about being self employed is dealing with your invoices and liaising with clients, and being on the CIS payroll will quickly eliminate all these tasks. The payroll services these companies offer will almost certainly make it worth your while filling out the small amount of paperwork that is needed to sign up.
Please visit http://www.liquidfriday.co.uk/ for further information about this topic.
http://www.liquidfriday.co.uk/
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