Fri 9th Aug 2019
There are many people who are working as contractors, trying to manage everything that comes with running a business but still seem to get stuck or hit a barrier when it comes to the paperwork. You love the work you do, the lifestyle of a contractor, the flexibility and control of choosing your hours and clients. Can you love your contractor business and get over the hurdles or admin?Absolutely, there is no reason why you can’t enjoy all the things you love as a contractor without the hassle of administration and paperwork. How? By working with an umbrella company.How does an umbrella company work?The first thing to realise is that when you work with an umbrella company, you become an employee of the umbrella. This does not mean that you step backwards into employment because you still have the freedom to choose your own clients, create your contracts, choose your working hours and everything that comes with being a contractor. But you gain the support of a larger organisation to take the administration away from you. How do my clients pay me?When you’re working with an umbrella company, you will be paid in just the same way that you would as being a permanent employee. You’ll give all your contract details to the umbrella company and from there, they invoice the clients, receive the payment (or chase if needs be) and pay you a regular wage from all the contracts you’ve worked on throughout that time period, whether that be weekly or monthly. Tax and national insurance contributions are deducted and paid to HMRC, along with a minimal umbrella margin and then you are paid your income. Benefits of an umbrellaAs an employee of the umbrella, you will also be eligible for employee benefits, such as holiday and statutory sick pay. You will also be covered by our comprehensive insurance policies for the assurance that you're protected at the right level at all times which is beneficial to all parties especially those who are in construction and part of the CIS scheme. Is it really less hassle?Yes, it really can be this simple. No more chasing clients for payment, no more evenings wasted on bookkeeping, no more stressful months worrying where the money is coming from. An umbrella company is the perfect way to manage your contractor business the way you want to whilst incorporating a good work-life balance. How much pay will I take home?Here at NWM, your pay is our priority and it is important to us that you understand how your calculations work and are managed. If you’re not sure if the umbrella or limited company route is the right path, we have an easy online calculator that will help you determine the amount that you would take home on a regular basis so you can see which would be the best option. You can use it at any time, try it now on our website.How do I manage everything?Working with an umbrella company has never been easier. We provide 24/7 access to your online account where you can view all your information, payment details, tax contributions and send any messages to your Account Manager. Our team is on hand to answer any questions you have along the way and our service to you is extremely important. We take pride in the fact that we offer a first-class umbrella service to all our clients. With a wealth of over 20 years industry knowledge we like to think that we have a pretty good idea of how your business runs and what you are looking to achieve, giving you the confidence and peace of mind that your business is in good hands. If you’re looking for an alternative way to manage your contractor business and would value the support and guidance of an umbrella company, we’d love to talk. Feel free to get in touch for more information.