Top Umbrella Companies
The top Umbrella Companies started out because of the IR35 tax legislation that went on the statute books in 1999. A history of the IR35 tax is below as is the history of umbrella companies, why they started and what they can do for contractors.
Inside IR35 or Outside IR35
As you will read, the IR35 legislation was put in place, therefore, to catch what the Government called ‘disguised employees’. These were company employees who were made redundant at a company on a Friday and started again on the Monday as contractors, in the same positions and doing the same job.
However, many more contractors than this were inside the IR35 net.
So, we have collated information derived from the Special Commissioners, who rule on IR35 cases, that will help you get yourself outside IR35.
The more that a contractor can be different from an employee in his or her working practices the better. So, here’s how to do it.
Limited Company or Umbrella Company
Contractors usually chose an Umbrella Company over a Limited Company for three reasons:-
1. They are inside IR35.
2. They fear they might be inside IR35 and so don’t want a subsequent investigation which could end up in them paying back tax.
Remember that being inside IR35 or outside IR35 is on a contract by contract basis. You could be inside IR35 on one contract and outside IR35 on another.
3. Moreover, they want to concentrate on their contracting careers and don’t want the hassle of all the admin. They want the Umbrella Company, therefore, to do it all for them.
4. They are induced by their agency to join one umbrella company or another. This is illegal under the 2010 Bribery Act but it happens. However, the suspicion is that agencies are taking ‘bungs’ to herd contractor towards particular umbrella companies. That would be construed, legally, as a bribe.
Offshore Umbrella Companies
Offshore Umbrella Companies are by far the best way for contractors to keep more of their cash. They can get returns on their money of 84% to 90%.
So, for a List or Directory of top umbrella companies offshore click on Offshore Umbrella Companies List