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June 19, 2012 at 03:02 AM EDT
The Benefits of Choosing UK Umbrella Company
Agency contractors would normally receive only 60 percent of their pay from an umbrella company. UK Umbrella helps to make it go higher to as much as 85 percent because it runs a system that reduces people's taxes - legally.
In the United Kingdom, umbrella companies are allowed to represent and act as employers to independent agency contractors who work under a fixed term. They provide services that allow contractors to receive their wages and to ensure that their pays are subjected only to their legal tax and accounting requirements.
The introduction of the Agency Worker Regulations gave way for some umbrella companies to make unlawful deductions. This should not be the case, as the only way to receive third party payments in the UK is through the PAYE (Pay as you earn), which authorizes umbrella companies to deduct only the income tax and national insurance contributions from a contractor's earnings. Any other payment structures such as dividends and loans are unlawful as they have been considered to be tax avoidance schemes.
Umbrella companies are all governed by HRMC. In essence, the earnings that a contractor can receive from umbrella companies should be the same prior to the amounts withheld. The difference in the net pay received by contractors from different umbrella companies lies in the amount that they retain.
UK Umbrella is the largest umbrella company in the United Kingdom. It is a company that processes payments only through PAYE which is an assurance that every amount withheld is legal and approved by HMRC, the UK government agency that collects taxes.
A contractor will normally encounter many problems related to their personal finance, tax, and money, but with UK Umbrella, they don't have to worry about these because it is compliant with the tax legislation covering UK contractors.
Many contractors, including professionals, can attest to the excellent benefits of working with UK Umbrella. Dr. Jennifer Wilson, a physician at Locum - Broadland Row, says:
"There are very few umbrella companies who understand the pressure Locum medical staff are under. Thankfully UK Umbrella understands and offers a package that removes all the stress of dealing with the finance side of the industry. The beauty of UK Umbrella is they do what they are good at and this leaves me to do what I'm good at. Thank you again for all your help."
With UK Umbrella, contractors can get more from their wages because it can offer to pay up to 85 percent without violating the law. This is one of the greatest benefits that UK Umbrella can offer to contractors under it. Most umbrella companies only give back 60 percent as take home pay for its contractor-employees.
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