Umbrella Company Experiences?

[MummyWithMenaces]

I'm thinking of becoming a contractor but really don't want to bother with all the paperwork and IR35 nightmares related to being a limited company.

I wondered if anyone has experience of using an umbrella company (such as Parasol?) and would give me the benefit of their wisdom?

Hi there, good question. Umbrella companies can be a wise move for shorter term contractors who want all of their tax and NI taken care of. The only extra bit of admin you need to do is to submit your business expenses, (some of which may be eligible for tax relief). We always recommend talking to at least three different companies as there are a lot of Umbrella companies that should be avoided (e.g. those with 'off-shore' offices).
Things to bear in mind are: 1. The margin fee charged by the company and making sure this includes all of the neccessary insurances 2. What expenses can be processed and 3. how easy it is to submit expenses (most good Umbrellas have an online portal).
Request a personal 'take home pay' illustration and you'll have a good idea who's going to be the best fit for you - and good luck with your contract!

Sam are you the Commercial Director of the company you mentioned? The OP was looking for people with experience of using an umbrella company, not undisclosed advertising. Reported.

Thanks for your responses. I realise that I would earn more (one article quoted perhaps 10%) by forming a limited company but at the moment I think that I'd rather pay that 10% to an Umbrella to do all the paperwork than lose even more time at weekends/evenings with my family.

Thanks Liquid I'll make sure I check the level/type of insurance covered and ask for an illustration so that I can compare companies.

It certainly seems (on the surface at least) a good, quick way to get going as a contractor. If all goes well I could always move to a Ltd company in future.

Mr Anchovy's prompt reporting meant that I didn't see Sam's post. If you have relevant industry knowledge perhaps you could repost any advice (adhering to talk guidelines of course!)

Mummy,
Frankly any company that has to drum up business by spamming boards is best avoided!
Go with personal recommendations :-)

I used Giant for 3 years until I went permanent a few months ago for just the reasons you describe. I had no problems with their service- they always paid on time (as long as my agency had paid them) but did find their online expenses system was a bit inflexible for my personal needs.

Talkin I didn't see Sam's post so I don't know what the content was or which company they represent, I was just trying to give them the opportunity to pass on any legitimate advice they may have without the advertising IFSWIM.

Thanks Sick that's interesting.

I used parasol for about 5 months when I first started contracting. I didn't know if was going to keep doing or would go back permie again. It was good and kept things simple, then I set up my limited company a year ago. Good luck!

I've used Parasol for about 7 years now. They have been great, I've had no issues with them.

Just out of interest liquid, what are the issues with companies with offshore offices?

There wasn't any legitimate advice, just a shameless plug. The company posted in their own name a few minutes later (crossed with my post) with something fairly sensible TBH.

Note that if you have been quoted 10% saving from limited company this is likely to be with an agency managing all the paperwork for you. Take a look at the Professional Contractors Group.

Offshore companies are often selling you schemes that may be ineffective - google Jimmy Carr.

Thanks Mr A will do.

Peggy and noodle that's good to hear that you have had positive experiences.