The Future of Public Contractors in respect to IR35

As a Public Contractor, you are probably wondering what is IR35? How will it affect my business ? HMRC has introduced changes to IR35 recently called “Off payroll working in public sector”, It is a new change legislation which seeks to put tax liability on public sector employers who employ through limited companies or meet the definition of self-employment.It ensures that disguised employment is identified where a contractual worker fills a permanent position in a company yet does not pay the statutory tax and National obligations as a permanent worker normally would. As per HMRC, only business owners exposed to actual risks warrant dividends and not employees who use a limited company. Continue reading “The Future of Public Contractors in respect to IR35”

A Brief History of Umbrella Companies


Money is one of the most powerful motivators of human beings. It has caused conflicts, separated homes, driven average people to phenomenal action and even pushed phenomenal people into desperate decisions.

This was the state of contracting at one point in the UK. Across the board, contracting companies were exploiting legal loopholes to reduce their tax payments and drive their profit margins up. Unwittingly, as companies drove their own liability down, they pushed that of their employees up and it became a matter of chance and time until they were caught by the system. Continue reading “A Brief History of Umbrella Companies”

Nine popular myths about Umbrella Companies

Exposing the facts!

It is highly suggested that you should know these nine popular myths of umbrella services. Question yourself, are you really in safe hands? Are you sure that the money comes into your account is 100% legal and you are not blacked out in any way. Always make sure that you keep an eye on latest HMRC updates so that you know exactly how it actually works and what is being done.

Facts umbrella company myths

Myth #1 – I can keep 90% of my pay by choosing a right umbrella company

Fact: No!

A compliant umbrella service provider is aligned with UK employment tax laws and are applied to all workers. As per the law, all contractors are subjected to national minimum wage policy. Compliant umbrella companies employ contractors and operate Pay As You Earn (PAYE) income tax and National insurance contributions. Hence it is not reasonable to believe that any compliant umbrella company would be promising their contractors for 80% – 90% take home. Continue reading “Nine popular myths about Umbrella Companies”

UMBRELLA OR LIMITED COMPANY… Which one suits you better?

Which one among Umbrella and Limited suits you better?

Its awesome that you are in the path of your new career. You might be unclear about the options to choose right now which could benefit you the most. This article would help you make you a better decision in terms of whether to choose an Umbrella services or a Limited company services. Let me take you through the basics of the options you have right now.

Umbrella Company

As you might already know, Umbrella services helps you with end to end employment services. To get umbrella services, means you will be the full time employee of an umbrella company like Ganumbra, where you will be bound by the employment contract and everything which comes with it. Your timesheets, expense claims, invoices, salaries and taxes will be taken care by your umbrella company. You will be working for your client as a freelancer, contract job or a full time basis. But all your documents will be taken care by umbrella company on behalf of your work-employer. Umbrella company and your Work-employer will also have a mutual agreement and a contract which contains your type of work, pay scale and everything related to your work specifications. Your salary will be paid by your work-employer to your umbrella company. Umbrella company will pay you your salary after deducting the taxes leaving you free of hassles so that you can only concentrate on your work and perform better. You can read our detailed article on Umbrella company here. Continue reading “UMBRELLA OR LIMITED COMPANY… Which one suits you better?”

UMBRELLA COMPANY… a true career friend every contractor needs

When you start your career, it is very important for you to know about your taxes, expenses, what goes after it and how you need to sort it overall. For instance, if you are a freelancer or working for a someone, you must know how are you going to plan your time sheets, invoices, salaries and expenses along with submitting end to end tax related documents to HMRC.

You should also know about the structure of your taxes because handling salary and tax is the most important aspect of career irrespective of work type.  

Contractor expenses

That’s where an Umbrella company comes in. An Umbrella company is also known as PAYE (Pay As You Go) Umbrella company. Umbrella companies are the lifesavers of Freelancers.  You will already have much work to focus on and to have a complete knowledge of tax and expenses on top of it could be a big task to handle all by yourself. You should have dedicated HMRC experts to do such tasks for you and ease your way. While you focus on your career goals, umbrella companies can be your guardian and handle your time sheets, invoices, taxes, expense claims and mediator to your agency/client company. Continue reading “UMBRELLA COMPANY… a true career friend every contractor needs”