Contracting With Pendulum
Umbrella companies are designed to remove nearly all the administration and company management associated with temporary payroll, which is why they can be a popular choice for some contractors.
The main advantages for using an umbrella company are:
- There is no need to be involved with uploading data to an online solution, completing VAT returns, submitting RTI returns, company accounts, taxation, director’s responsibilities and so on.
- For short-term contractors, a main advantage is not having the time consuming process of forming a company and then arranging for it to be dissolved.
What is an umbrella company?
An umbrella company is in simple terms an outsourcing of your payroll. Rather than having the cost and hassle of setting up your own limited company you can work via an umbrella company.
With an umbrella company solution:
- The contractor would not be a director nor have the responsibilities associated with running a limited company.
- The umbrella company provider would take care of all accountancy and taxation matters and also deal with all administration matters.
- The contractor completes a timesheet and forwards it to the umbrella company, who then invoices the agent.
- Following payment by the agent to the umbrella company, a payment is made by the umbrella company to the contractor.
A PAYE umbrella treats all your income as salary. This means you will pay employers NI, employees NI and PAYE on all your income.
There are lots of other benefits to working alongside Pendulum Contracting Services, but if you’re still unsure and need to discuss the matter further than our team is on hand just waiting for your call.
Call 0333 0066 296 to find out more!