Landmarktaxservices presents a straightforward and convenient approach to work. If you’re unfamiliar with Umbrella contracting, the process may initially seem complex. To help you get started, it’s recommended to gain a better understanding of the involved aspects.

What is an Umbrella company? 

Being an Umbrella employee offers a simple and direct method to engage in contracting. The Umbrella company becomes your employer, allowing you to experience the flexibility of contracting without the associated hassles. This involves becoming an employee of the Umbrella company, which then supplies your services to other companies, such as employment agencies or end hirers.

Whether working on a single contract or seamlessly transitioning between multiple contracts, you can build a continuous employment record, proving beneficial when applying for mortgages or loans. Additional employment benefits include holiday pay, statutory payments for maternity/paternity/adoption, sick leave, access to a company pension scheme, and various insurance covers.

As an Umbrella contractor, you’ll pay Income Tax and National Insurance contributions on all your income at the source, similar to any employee. While this may result in slightly less take-home pay compared to a limited company contractor operating outside IR35, the advantages include standard employment benefits, an excellent employee benefits scheme, and the absence of administrative tasks associated with running your own business.

The Benefits:

1. Simple Set-up: Registering as a Landmarktaxservices employee and commencing work is a quick process, taking only a few minutes.
2. Correct Tax: Income Tax and National Insurance calculations are handled by us, ensuring accurate deductions directly from your pay.
3. Employee Rights: Enjoy full employment rights while retaining the flexibility to switch between contracts.
4. Holiday Pay: Accrue holiday pay and take advantage of paid maternity/paternity and adoption leave.
5. Pension Scheme: Save for your future through our employment pension scheme or your private pension or SIPP, with the option for personal accident insurance.
6. Long-term Employment: Build a continuous record of employment, beneficial for mortgage and loan applications.
7. Insurance Cover: Access a wide range of insurance, including public liability, employers’ liability, and professional indemnity.

Your Options: Choosing the right working option can be complex, considering alternatives like Agency PAYE or operating through your limited company. Below, we compare the options.

Landmarktaxservices Umbrella:

• Security of Payment: We act as your employer, ensuring timely payments.
• Continuous Employment: Seamlessly switch between contracts for continuous employment.
• Income: National Insurance and income tax are deducted for compliance.

Agency PAYE:

• Security of Payment: Limited protection, with potential pay loss if the end client refuses payment.
• Continuous Employment: Potential gaps in employment record and increased admin responsibilities.
• Income: National Insurance and Income Tax deducted from take-home pay for compliance.

Limited Company:

• Security of Payment: No protection; may require insurance for non-payment situations.
• Continuous Employment: Possible breaks between assignments, affecting income reliability.
• Income: Outside IR35, allows a mix of dividends and salary for higher take-home pay, but involves a self-assessment tax return.