PAYE Umbrella Company gets the job done!
A PAYE Umbrella Company is like a bridge between the contractor and the clients. It provides a readymade invoicing facility for the client. Here the client is considered as the employee of the umbrella and they can be even in thousands. The main role of this PAYE Umbrella Company is to handle all the annoying stuff that come up while contracting. These issues may be related with any from simple invoices to sorting out taxes. Thus, by taking over this kind of admin to a PAYE Umbrella Company will make you free and gives you freedom to enjoy doing the work. So, you can now stop worrying about all the hate you incur while doing it.
The main role of a PAYE Umbrella Company includes:
· Invoicing of the client
· Sorting out your taxes
· Paying you without any tensions
After signing up with a PAYE Umbrella Company, the most common issue of IR35 becomes completely irrelevant. This is because if you’re under the PAYE Umbrella Company, you’ll pay all the taxes of PAYE and NIC’s and the IR35 cannot affect them.
While you sign up with the Umbrella Company, you’ll no longer be able to build up your own brand image, though you’ll earn more. There is also an issue with the tax efficiency as all the money you get paid will be in terms of employment income.
By joining an Umbrella Company, you’ll handle all your responsibilities and hassles to your PAYE Umbrella Company. They’ll pay bills to your clients and they’ll also pay you for the work you did. Thus, you need not be aware of all the legal responsibilities and risks that are involved while running a firm. There is also the concept of “deemed employment”, wherein the employees who cannot work solely are brought under the same wing. You’ll be having the earnings just like the other employees even though you’re head. This makes you eligible for loans.
Even it is so simple to sign up with this PAYE Umbrella Company. It just takes employment contract to be signed up. After that, the contracts will be just as normal. The additional thing is to maintain a timesheet which will be passed to the PAYE Umbrella Company before passing with clients and contractor. The Umbrella cuts off the tax and NIC’s and will pay you the rest. Sounds so simple, Right?