Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Work

Chat with other users about all things related to working life on our Work forum.

umbrella company for freelancing via agency

6 replies

whatdoesittake48 · 06/01/2015 22:49

I have a meeting with a recruitment agency this week to discuss me taking on copywriting roles with them. To this point I have been a sole trader but understand that it isn't possible for agency work.
The agent suggested an umbrella company or becoming a limited company. The latter may happen at some stage but in the meantime the umbrella company will probably be my option.
Can anyone give me an idea of how much they cost and what it really means in terms of my taxation and legal liabilities.
It seems a little confusing. ..

OP posts:
JennyWren · 06/01/2015 23:40

I can't help with the umbrella company but I faced the same issue myself last year. I decided to go the limited company route. The umbrella company will take a cut and the limited company was so easy to set up and is actually more cost efficient tax-wise. How much work do you do as a sole trader? I'm a technical writer and did about £25k in my last financial year before I switched. Are you sure that it isn't worth your while becoming a limited company? It also gives you more protection as an individual.

whatdoesittake48 · 07/01/2015 07:38

Thank you for your reply.
My average income had been about 15000 but I wasn't working full time. I feel I have been under selling myself and so the help of an agency will be great. Now my kids are older I can take on more challenging and time consuming roles.
I expect to increase my income to about 35k assuming I am working full time.
I guess my main concern is that I won't enjoy the agency work and that the tax implications of being limited will be too complicated for me.
I also need a quick solution as I want to start asap as we are very broke at the moment and my freelance work from home has slowed down.
I see the umbels colony as a solution while I get used to a new way of working.

OP posts:
whatdoesittake48 · 07/01/2015 07:40

Umbels colony? Umbrella company of course!

OP posts:
thinkingofholidays · 09/01/2015 21:40

Bump. V interested if anyone knows more?

WowWowSauce · 10/01/2015 07:33

Avoid the umbrella company route - my agency have pushed me into it and they've really screwed up my tax and made me pay for the privilege (between Parasol and Paystream). Go limited. I'm having to change jobs so I can get out and do that.

ToBeeOrNot · 11/01/2015 13:04

When I was comparing whether to use an umbrella company or set up a ltd it was suggested that you needed to be earning over 28k a year to make the set up/accountancy costs of a ltd worthwhile. Otherwise it tends to be cheaper and more straightforward to use an umbrella company.

New posts on this thread. Refresh page
Swipe left for the next trending thread