Any recommendations of umbrella companies you contractors ?

Bear · 24 Jun 2010 at 15:53

I have just been offered a job contracting so I need to set up an Umbrella company. There are loads to choose from from what I can see so not sure which are the good ones and which are the cowboys.

I am in the engineering design sector, not that it will make much difference I dont suppose?? I've seen quite a few good things said about Parasol, other than that i havent got a clue.

So any to look out for and who to avoid ?

Many thanks.

territt · 24 Jun 2010 at 16:05

I used to use Crystal Umbrella and they was really good.

Ev0 · 24 Jun 2010 at 16:07

You'll find with each company people who say don't touch them, and then others who say they were good

I went with Parasol when I contracted and they were fine. Always got paid when they said I would, payments were always correct, had a nice web front end to it all which made entering everything for expenses easy etc.

Also heard good things about SJD.

ShadowMan · 24 Jun 2010 at 16:33

I used Parasol for nearly 3 years. Easy times and always paid ontime. Very easy site to use and inputting expenses was a breeze.

robbiemc · 24 Jun 2010 at 16:37

I've used Atlantic Umbrella for a number of contract jobs in the past, and they've always been highly professional.

Abraham · 24 Jun 2010 at 16:41

What are the benefits/negatives between using an umbrella company or going as a sole trader/setting up your own ltd company?
My mum started out contracting through an umbrella company but then for the next contract set up a ltd company, which I can now use should I get any contracting work in the future (likely, soon)

Bear · 24 Jun 2010 at 16:53

Abraham said:
What are the benefits/negatives between using an umbrella company or going as a sole trader/setting up your own ltd company?
My mum started out contracting through an umbrella company but then for the next contract set up a ltd company, which I can now use should I get any contracting work in the future (likely, soon)

I havent a clue as I am a permie normally so this is the first time I have done this. I would be interested myself.

Thanks for all the input guys.

Abraham · 24 Jun 2010 at 16:57

Bear said:
I havent a clue as I am a permie normally so this is the first time I have done this. I would be interested myself.

Thanks for all the input guys.

Yeah sorry, it was a bit of a hijack for the guys answering your question, but might also present another option for you

robbiemc · 24 Jun 2010 at 17:05

If you're confident that you can keep up with the accounts side of things, you're be better off with setting up your own ltd company, but it's likely you'd have to appoint an accountant to keep everything 'by the book'. You'll also have to invest more of your own time to administration.
To many it's worth spending the extra to the Umbrella company so that everything is 100% legal, but by all means check out more information here.

Bear · 24 Jun 2010 at 17:06

Abraham said:
Yeah sorry, it was a bit of a hijack for the guys answering your question, but might also present another option for you

From the quick scan I have made it seem that a Ltd company you have to get an accountant to take care of the paperwork for you and you on average get to keep more of your money based on some extra expenses you can claim (can keep up to 80% of your earnings). Where as an umbrella company will take care of all the paper work for you but you cannot claim for things you can as a ltd company (can keep up to 68-73% of your earnings) but you get liability insurance and things like that.

Im sure there is a lot more to it than that but that was just from a quick scan.

mattyfez · 24 Jun 2010 at 17:35

robbiemc said:
I've used Atlantic Umbrella for a number of contract jobs in the past, and they've always been highly professional.

I've just ditched Atlantic as they frequently get my invoices wrong and once even forgot to invoice at all. then when I complained I was told I was rude! I would not recommend them at all.
Just changed to springboard, mAnly as the first contract has no admin fees and they get good reviews.

Ev0 · 24 Jun 2010 at 17:44

Abraham said:
What are the benefits/negatives between using an umbrella company or going as a sole trader/setting up your own ltd company?
My mum started out contracting through an umbrella company but then for the next contract set up a ltd company, which I can now use should I get any contracting work in the future (likely, soon)

Umbrella company is less hassle, but less reward. If you're only doing it for a short whilst it's the easiest solution.

I knew I'd only need someone for 3 months before going perm so there was no point setting up something myself.

Tonyator · 24 Jun 2010 at 17:50

I'd just avoid the Umbrella Corporation, they're evil and there's always trouble where they are involved.

Jonnycoupe · 24 Jun 2010 at 22:32

I run a limited company and use Brookson to do my accounting and management side. All I do it enter my hours each week (just the number, ie 40) and they do the rest, including advice slips saying how much I can take once funds are received.

They moniter my bank account and I clarify what the incoming and outgoing amounts are for with there wizard and I get text messages when paid with the invoice number the amount is allocated to. It makes keeping track easy. Amount for VAT and PAYE NI (£13 or something silly a quarter) are clearly described, you just then make the electronic payment.

They have also released an iDirector app to manage your account.

Works out pretty much 80% take home of my rate and flat rate VAT scheme gets a nice lump of leftover every quarter.

I cant really fault them for the last few years Ive used them. Quite expensive but then its pretty must hassle free.

Im also in engineering consultancy.

Brookson also do a pretty thorough IR35 compliance check and once they are happy with your contract terms and they will support you with any HMRC investigations rather than leaving you to fend for yourself.

Limited company allows personal mileage claims at the 40p a mile for the first 10k and 25p after (Means free petrol in my car

)

I can refer you if you want to have a chat with them?

Morba · 24 Jun 2010 at 22:37

I was taking 80% of my rate by using Sanzar. I still get trustee emails from them so they are still going, might be worth takig a look.

Far easier than doug paperwork and keeping t all stored etc etc.

If you do decide to go ltd co, take a look at SJD for your accountants, very good imo