NET 85% OF YOUR INCOME: http://www.tarpon-uk.com/contractor-salary-calculator/
Tel: 0845 643 1580
Tarpon is an employment benefits company which offers contractors a tax-efficient payroll service. We are experts at giving impartial tax advice. We'll claim up to 100% of your expenses back for you. And we'll provide you with a personal business manager to handle both your admin and your invoicing. Plus many additional benefits making contracting more rewarding.
What a contractor must insist on when using an Umbrella company / LTD company.
Finding a compliant Umbrella Company can be a daunting experience for a contractor. There are many things you need to be aware of to ensure that you select a legal payroll option.
Employment contract
Being employed by your Umbrella company means you are IR35 and MSC compliant and are able to benefit from an expenses dispensation. Insist on seeing a copy of your employment contract.
PAYE payroll
Your Umbrella Company must operate a PAYE payroll to comply with HMRC regulations. Insist on being issued with payslips so that you can see that you are receiving a bona fide payroll.
Dispensation
Contractors are responsible for their tax and NI contributions should they choose a non-compliant Umbrella Company. Insist on seeing a letter which shows that the HMRC have provided the Umbrella Company with the ability to offer an approved dispensation to their employees.
Employee benefits
As an employer your Umbrella Company should be providing you with a full range of employee benefits. Insist that you have access to taxable benefits such as pensions, childcare vouchers, ride to work and the give as you earn scheme.
Holiday pay, SSP, SMP, SPP,
Your umbrella company has to provide the facility for you to receive Holiday pay, statutory sick pay, & maternity pay / paternity pay. Insist on receiving full details in writing before you join.
P60 & P45
As an employee you do not have to complete tax returns for the work completed through the Umbrella Company. Insist that your Umbrella Company issues you with a P60 and P45 when required.
Training
As an employer, your Umbrella Company has a responsibility to provide the facilities for you to be trained. Insist that your Umbrella Company values you and makes provision to develop your skills.
Professional Insurances
It is essential that you are covered by the following insurances -- Professional Indemnity, Public Liability and Employers liability. Insist that your Umbrella Company give you copies of these insurances so you can keep them on file.
Umbrella Company -- Who are they? Where are they?
The website may show that the Umbrella Company has premises and people to support you with your account. Insist on visiting the premises and seeing an individual who will be managing your account.
Advice
You should be able to speak with somebody within the Umbrella company immediately should you have any questions or issues with legislation, your contract, etc. Insist that you can contact your account manager both during and after out of office hours.
Fees
Ensure that the Umbrella Company have a clear policy with regards to their fees. Watch out for the hidden fees - all fees should be made clear when joining. You should not be charged extra for day to day activities such as invoicing, salary payments, obtaining advice or compiling reference letters.
Auditors
You should also request that the Umbrella Company are audited regularly to show that standards set by the HMRC are being adhered to. Insist on seeing reports that the auditors have completed.
Make sure your net pay is realistic
Remember that if your pay is too good to be true -- then it most probably is. An Umbrella Company is a legal payroll solution for a contractor to be paid -- it is not a tax avoidance scheme. Every worker in the UK has to pay the right tax and NI -- whatever your Umbrella Company says, you are not exempt.
Make sure you have done your research when selecting an Umbrella Company, there are many cases which show that the HMRC are catching up with people who have a shortfall of tax and NI paid. The Umbrella Company's website may say they are fully compliant. Unless you demand to see all necessary documents than you are leaving yourself vulnerable and non-compliant.
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How Umbrella Companies Workby planITServices665 views
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