Once upon a time, contractors were almost certain to start a Limited Company as a way to run their operations. Over the past decade or two, however, the concept of using an umbrella company has become increasingly common.
But is the idea of becoming an ‘employee’ of a company that handles the payments related to your contractor jobs one that can work for you? Let’s take a look below.
There are hundreds of umbrella companies out there, which should give you a fantastic opportunity to find a suitable solution. When you do, the following benefits can be gained.
This is still seen as the alternative way of handling your contracting operations. However, the hassle-free approach is regarded as an attractive prospect for many contractors old and new, particularly as it removes the fear of doing things wrong. Under the right circumstances, it can be ideal.
The demand for umbrella schemes is growing by the year, but the concept of setting up a Limited Company remains the most common pathway for contractors in many fields. This option offers some features that the umbrella schemes cannot match. Here’s where being an ‘employee’ can fall short;
The disadvantages will outweigh the positives for some contractors, which is why they are worth knowing. Nonetheless, the growing demand for the hassle-free approach to handling contracts cannot be ignored. For some, it will be the perfect option.
The choice between using an umbrella company or taking the traditional route is largely one of personal preference and requires weighing up the pros and cons related to money, time, and emotional hassle. Take the time to consider all aspects, and it will provide the perfect platform for your future contracting activities.