Umbrella:
An Umbrella Company provides a ready-made invoicing vehicle for contractors while removing the administrative burden normally associated with contracting in the form of a Private Limited Company.
The Umbrella issues invoices to the Agency, collects
payments from clients/agencies, calculates expense recovery, and Tax/NI
liabilities (although some Umbrella Companies charge extra for this service
not Maxim Finance).
Additional benefits, such as sick pay, holiday pay and discounts on financial products and free advice, are often included in their services.
This kind of service attracts a small premium and charges are somewhere between 3% to 6% gross invoiced income, to reflect the level of benefits provided.
There are complex variations of Managed Service Companies called Composite
Companies, however this choice of trading style is now proven to be against
the spirit and inception of both IR35 and good practice for UK based Contractors.
Composite, Managed Service Companies and their offshore equivalents, are
now officially ruled as illegal by HMRC there are various other ways as
yet unproven but will leave the individual contractor at significant risk
from the Inland Revenue on Deemed payment and Tax inspections.
We hope you have found these pages to be of value and we trust it will help
ensure the smooth running of your contract, for all parties involved. Clearly
there is an abundance of information relating to the topics covered. This
document introduces key condensed information.
So if you would like to clarify any points raised or indeed omitted from the document please contact us on 01635 580876 or email - our feedback team. on info@maximfinance.co.uk
We at Maxim Finance trust that the information we have provided demonstrates that contracting can be fun and profitable. We wish you every success in your chosen role as a contractor.
THE MAXIM FINANCE TEAM
Maxim Finance Ltd © 2011. Privacy Policy - Disclaimer
......... maxim
........A "less taxing" approach to Contracting and Freelancing
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