Our Traditional Umbrella

When it comes to tax solutions for contractors, umbrella companies have been tried and tested for years now and many contractors still prefer managing their affairs in this way. And whilst we think our Employed Solution offers better retention rates with far less admin, we also understand that some contractors prefer to stick with what they know. It is for this reason that we offer a wide range of solutions to our contractors, including umbrella companies, with the added benefit of our compliance and tax specialists improving those traditional structures to get even better returns.

Umbrella Companies – A Safe Way to Get Paid

Umbrella Companies may have been around for a long time but it was after the introduction of Managed Service Legislation in 2007 that they really became the default tax setting for many contractors. Prior to that 2007 legislation umbrella companies were very similar to single person company or composite structures but now they are far more complex and are built to be both compliant and a legally secure way to get paid. In effect they operate as PAYE but with an added dimension – you will pay national insurance and PAYE but you will also be able to claim back your business expenses.

Download your personalised Illustration

The Umbrella Company Uplift

Anyone who has spent any time contracting will quickly realise that clients and agencies require that the contractor invoices them for any work done and this needs to be done either through a Limited Company or through an Umbrella Company. But within that system is also what is known as ‘uplift’ This is where contractors who are employed through another company tend to receive slightly more money than those operating on their own. This would mean that a contractor operating on their own and being paid through the agency’s PAYE might receive a rate of £15 per hour whilst a contractor operating through a larger company could receive £17+ because of the savings the agency will be making.

 

Umbrella Company Benefits

There are all kinds of benefits to running your contracting through an umbrella company and not all of them are financial. There are all the benefits and statutory rights that come with working as an employee (such as maternity pay, sick leave and holiday pay) as well as full cover for legal liability and full professional and public liability insurance. For many people the biggest benefit is the amount of time that they will free up when they join an umbrella company. Instead of being a director of a limited company and having to take care of the day to day running of the company and all the associated stresses and grind you leave most of the paperwork (including tax, invoicing and chasing payments) to the umbrella company, leaving you free to do what you do best – earn money! What an umbrella company does is effectively give you your own massive back office, without any of the costs or effort of having to set it up and run it yourself. Umbrella companies are particularly useful for contractors who are only contracting in the short term – maybe for a few months – and don’t want all the hassles of setting up a Limited Company and don’t want to have to deal with company accounts and VAT. Finally, the Umbrella Company structure at Clever PAYE offers significant advantages over most other umbrella companies on the market, but the main one is that we offer far higher returns than our competitors thanks to our experienced contractor tax specialists and compliance experts.

Look at how our employed solution compares to other payment solutions

How It Works

Joining the Clever PAYE umbrella company solution is simple, as is leaving. And once you’re working under our umbrella company it will handle all of your day to day admin – raising invoices, collecting payments, deducting tax and national insurance – leaving you to concentrate on contracting. All you have to do is hand in a timesheet at the end of your working week.

We’re proud to have contractors working with

Amex
Atkins
aviva
rsa