The world of contracting is changing. With the new IR35 rules moving into the private sector from April 2020, more and more emphasis is being put on contractors to be compliant. If you’re currently looking for new contracts, you’re more than likely to have already seen roles advertised as falling inside IR35.
If you’re new to contracting or aren’t sure how to go about applying for a role inside IR35, an Umbrella Company is likely to be your best option.
An umbrella company acts as your employer during your contract and deals with everything, including invoicing, all tax and NI deductions and payments. By working under an Umbrella Company, not only will you automatically become IR35 compliant, you’ll also gain a host of employee benefits.
Key Benefits of Working Under An Umbrella Company:
- Employee Benefits– By working under an Umbrella Company, you will be treated as an employee. Your Umbrella Company take care of the admin, including all of your invoicing, credit control and cover you under their insurance. You will have access to all of the statutory benefits any employee has, including statutory sick pay, statutory maternity and paternity leave and holiday pay without sacrificing the benefits and freedom of contracting.
- Financial Help– When you work under an Umbrella Company, you don’t need to worry about your National Insurance and taxes. All of these are managed on your behalf, which means there are no unexpected tax or National Insurance costs to worry about. You also won’t need to worry about IR35, which means you can start your new contract knowing you’re 100% IR35 compliant.
- Work Flexibility– If you are new to contracting, working with an umbrella company is an excellent place to start. It allows you to try being a contractor and enjoy the benefits of doing so, without the financial demands of running a limited company.
- It’s a Lot Simpler– An Umbrella Company aims to make managing your business as simple as possible, something that many contractors struggle with. Rather than having to worry about invoices and deductions, everything is taken care of on your behalf and paid directly to you. This gives you time to focus on the work you do best.
iContract has joined forces with iConsult to make it as easy as possible to choose a fully compliant umbrella company solution. Find out more here.