subject: How A Self-employed Person Can Save Business Time And Tax Benefit [print this page] An umbrella company is a wonderful thing for a person who is self-employed- whether they are a contractor or a freelancer, it is possible to save a huge amount of money and time with the removal of onerous administrative duties and tax responsibilities.
An umbrella company is able to issue your invoices, receive payments from your clients, calculate tax and NI, and provide holiday and sick pay. The aim is to provide the freelancer with a final net salary payment to their own personal bank account.
Using an umbrella company is your way of becoming registered as a permanent employee and if you work from home your home is treated as your office and as such it is possible to claim back many types of expenses and office purchases made which have enabled you to deliver your service to a client.
As an employee of your umbrella company it also covers you with insurance including; professional indemnity, public and employer liability insurance. The level of insurance offered will differ from one Umbrella Company to the next so you need to check this first.
In short, any umbrella company will follow Inland Revenue calculations and all the standard business practices normally the responsibility of any company trading as limited which saves you any hassle in carrying out government-compliant business practices personally.
Any umbrella company that you set up will give you the same tax benefits on your earnings and therefore wont make a difference to your take home pay. The key areas in which umbrella companies differ to each other are: level of service provided to you and the fees charged.
At Churchill Knight & Associates Ltd we have been saving thousands of self -employed people in the UK money and time. We are a specialist accountancy service with more than a dozen years of successful trading in the United Kingdom.
by: Rutland Savour
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