Compusource Limited

Mind Blowing Payroll Services Working through an umbrella company is a great introduction to contracting and many people choose to continue working this way throughout their contracting career. One of the key benefits is that you are an employee of the umbrella company, so you get employment rights and benefits like any permanent member of staff. You also have the clout of the umbrella company to chase invoices and make sure you are paid, something which you might find more difficult when you are self-employed. And, of course, the main advantage is that you take away the hassle of managing your own tax returns and NI. Umbrella companies rose to prominence in 2000 following the government’s introduction of IR35 legislation, which seeks to avoid people leaving their permanent role on a Friday and coming back in exactly the same role as a contractor the following Monday in order to avoid tax. Working with an umbrella company, you do not need to worry about the IR35 rules. This total arrangement allows you to build up a relationship with the umbrella company, move between contracts without changing your pay structure, and receive HR advice and a level of security that you do not get when working directly with clients. You may also get access to financial advice and be covered by the umbrella company’s insurance in the workplace.