Umbrella
Posted: Thu 7 September, 2006 | Author: Lyle | Filed under: Getting Organised, Work-related |3 Comments »Well, another step along the path to the new job has been taken.
Because it’s a contract, rather than being a “proper” job, I need to either have my own company, or go through another company that employs contractors, known as an umbrella company. (in this case I’ll be using one called Parasol) Slightly more complex in some ways (it takes a bit more time to get paid, and sorting out the contract etc.) it also makes life a shitload easier in many others. So much easier, in fact, that when I looked through all the guff this time, it made me think “I’ve been going so wrong in previous times“.
The contract scenario is a bit of a ‘mare, though. If I had my own company, it would be directly between the agency I’m working through and my company. However, with the umbrella company setup, there’s a contract between the client and the agency, one between the agency and the umbrella company, and then one between me and the umbrella company. Still, that should all be stuff I don’t really need to care about, thank god.
On the other side of the coin, though, the payback is fantastic. Yes, it costs me a small amount to use the umbrella company. (roughly £55 per month, although with tax relief that comes down to £44) but at the same time I get all my expenses back. OK, I have to provide receipts, but that’s no different to anywhere else, really.
But it means that while I’m still living in Berkshire and travelling up to Cambridge to work, I’ll be paid back my travel expenses, my hotel accommodation (up to about £70 per night) and food costs up to about £21 per day. Frankly, that works out as a bloody good deal, particularly when you also consider that the daily rate is already higher than I’m getting paid now.
Yeah, sure, once we’ve moved to Norfolk the expenses will come down, but even then I can still claim all my travel back.
It also means I don’t have any hassle with my mates at Inland Revenue, because what I get paid already has tax and NI deducted by Parasol. I don’t have to worry about anything else except making sure I keep copies of all my receipts, just in case. It also means that we shouldn’t fall foul of all the crap regarding mortgages etc., as I’m not self-employed, but instead employed by Parasol.
In short, it’s a case of “What the hell was I thinking, having my own company? This is so much easier!“
Yeah, that shit about being a company when contracting is too much hassle. And let’s be honest, most contractors are employees, filling apost which for whatever reason is not filled by a permanent employee. When IR35 changed, my Agency set up PAYE.
I was very much of the view that IR35 was a way ofrobbing me, because under it various assorted Aussies, Kiwis and Springboks could work for low rates because they intended to skip the country before Inland Rvenue caught up with them. So the market rate for Brit contractors was too low.
I’ve heard bad things about parasol, maybe google them and have a look away from the first page full of sponsored links.
I use PSCCS and they charge £10 a week, never had any problems.
Just had a look at PSCCS, looks ok, but too cheap, I think the biggest problem with these companies is their lack of expertise, how can they advise on pay/tax and charge so little? I’d look for someone with some accountacy backbone e.g. http://www.filetravel.co.uk http://www.libertybishop.co.uk http://www.mammothgroup.co.uk