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Construction Umbrella company
Is Your Business Ready For HMRC’s Newest Weapon?
Umbrella At The Ready!
Following the introduction of new off-payroll working (IR35) rules in April, it is suggested by research that around one-third of limited company contractors are currently working on ‘outside IR35’ contracts. That is where we, as a construction umbrella company come in.
A further three-in-ten (29%) said that they were out of contract or were waiting to receive a status determination. In future, these contractors could be judged as inside or outside IR35.
The results suggest that while some contractors can continue working through a PSC, many are getting caught by IR35 or being encouraged to use an intermediary like an umbrella company.
Who Are We…?
An umbrella company is a company that contractors who are self-employed can join instead of setting up and then working through their own limited company.
You become an employee when you join an umbrella company. We act as an intermediary between you and recruitment agencies or end-clients. Building contractors, construction companies, we are here to help with an end-to-end solution.
Why Use An Umbrella Company?
Setting up and running a limited company that you work through can be challenging and won’t always be the best choice for contractors that do not have experience in that area.
You can do away with administrative duties completely by using us. This means not keeping company records, not having to file VAT returns, and not having to keep up with all the other responsibilities you would have as the director of a limited company.
You or the contractor keep the timesheets, which they give to us, the umbrella company and from there the payroll is then processed from there.
Umbrella Companies For IR35 Status
A contractor is able to work on contracts both inside and outside of IR35, as the IR35 status applies to the contracts and not to the actual contractor.
Some contractors who only work inside IR35 might choose to use an umbrella company to handle and limit the administrative duties as they can be complex and time consuming.
‘Inside IR35’ contractors are required by law to pay income tax and NIC’s at the same level as company employees, regardless of the fact that they do not receive any of the benefits that come with employment, such as holidays and sick pay.
It is because of this that many ‘inside IR35’ contractors have made the switch to using an umbrella company in recent months. We are an umbrella company and specialise in the industry, you are taken in as an employee, the taxes you pay are the same as the national average and as ‘inside IR35’, but you get access to statutory employment benefits, as well as discounts and other bonuses.
The Umbrella Company You Have Been Looking For
Can you afford the fine if HMRC decides your self-employed operatives are non-compliant?
Run your numbers through our liability calculator and see how big a risk you are taking.