The use of umbrella companies is definitely on the rise. More and more contractors are turning to this option as they recognise the many benefits that can be gained. The use of an umbrella company for contractors means less hassle, less paperwork and less confusion. Read on to discover the top five benefits that can be gained via going down this route…
- Ease of use
One of the main pulling points regarding umbrella companies is the fact that they are easy to use. The only thing you need to do is fill out a timesheet and a list of your expenses. You will then submit these whilst the company does all of the hard work for you. All you need to do is wait until you are paid. You certainly won’t find a process easier or more straightforward than this one; that is for sure. This also aptly displays how the amount of paperwork you need to do is diminished dramatically. You only have to worry about the timesheet and expenses – nothing else. If you hire other contractors, the company can also assist with payroll. Outsourced payroll takes the weight off your shoulders.
- No risk of spending the money you owe for tax
One of the major issues associated with sorting out your own tax is the fact that you end up spending it rather than saving it. Paying tax on a yearly basis can be troublesome for many. The tax seems so far into the distance that people don’t see the necessity to save and thus when the time comes they find themselves in a sticky situation. This does not happen with umbrella companies because the tax will be moved prior to you receiving your money.
- A great solution for those contracting on a short term basis
Not everybody operating as a contractor sees it is a long term solution. Some people may want to simply try it out. There are others who become a contractor whilst in between jobs and so if a position became available they would take it. Umbrella companies are especially beneficial for these people as minimum effort is required.
- Everything stays above the law
One of the main issues of doing things alone is that people are not always fully aware of the legislation in place. Because of this, people often end up disobeying the regulations provided without even realising they are doing it. There is absolutely no chance of this happening if you use an umbrella company. After all, these businesses take care of all this for you.
- Increases efficiency
You don’t have to worry about tax or any paperwork. Instead, you can focus on the core services you provide and what makes you generate money. As a result, your efficiency will improve and so will your potential for creating higher levels of profit.
There is definitely a lot to be gained by utilising an umbrella company. Nonetheless, you need to make sure you choose the business wisely. Opt for a company who charges a set rate regardless i.e. someone who does not increase costs the more you earn. Furthermore, be certain that they have achieved a credible reputation in the industry as well.