Using umbrella company as a contractor

By Greg Dickson

When you're new to contracting, you may have to do lot of hard work to get things going in the right way. You'll have to develop communication skills to win contracts while you will have to work on your executive abilities to keep a record of work progress, communication with the client and get rid of the payment related issues. Thus, the new contractors frequently have a heavy time when beginning contracting.

Nevertheless contractors can reduce their responsibilities to a good deal by utilizing a top umbrella company. The contractors looking to concentrate on work rather than administration and payment issues will find it extremely beneficial. With the help of a top umbrella company, you will not only become stress free but you'll also have higher earnings to take home.

The umbrella corporations will charge for their services. When you make a decision to use an umbrella company, you've got to pick the one that charges least charges and commissions. Always search for the hidden costs and processing costs. These costs aren't obvious and you'll miss them if you are not looking for them particularly. ensure that you are spending some time to analyze the expenses before beginning with an umbrella company.

Likewise, when you use an umbrella company, you don't get to make the executive and other core decisions about the company. If your business needs this decision making power, then you will do better with a limited company. But the limited companies have their own drawbacks including the weight of administrative responsibility.

As a contractor, you have got to make the final decision about these two different routes. You have got to look at costs, situation with IR35 and nature of your business before picking any of the two. When you have gone through these things, you'll finish up making a better decision.

About the Author:

Greg Dickson is the head of marketing for the Bedouin Group, one the leading providers of umbrella company solutions for contractors and freelancers. Bedouin Cash also provides contractor mortgages, contractor payroll, contractor tax calculator and contractor pensions.