What Are The Top Advantages Of Working Under An Umbrella company?

The employment scene in the United Kingdom has drastically changed over the years. There are currently more than 5 million people who are self-employed which makes up at least 15% of the labor market which is a markup from the last figures in 2000.

If you are an independent contractor then you will greatly benefit from being under a limited company. Take a look at the top 5 main reasons why you can benefit from a limited company:

Worry no more with IR35

IR35 is an anti-tax avoidance law which is applicable to independent contractors. When you are under a limited company, then you do not have to worry about IR35 since you are basically their employee which means that they will take care of it and you will then have no legal obligations.

Experience work flexibility

Getting the help of a limited company is great for people who are just starting out in becoming an independent contractor. You will have no financial demands from starting and managing your own company and you also don’t have to worry about any paperwork.

This is also very beneficial for those who will be working on short-term contracts or those who are in between their stable work. Get the help of an umbrella organization so that you can just work at ease.

Enjoy the benefits of a regular working employee

You will have the freedom of an independent contractor but at the same time enjoy the usual benefits of a regular employee. When you are under an Umbrella company, then you will experience the usual benefits such as sick leave or redundancy pay just to name a few.

Get access to pension benefits

In 2012, the UK government introduced the Pension Auto Enrollment Scheme which helps workers save up for their retirement. When you are working under an umbrella organization, this means that you will be automatically enrolled in the program.

This will be reflected on your payslip and is a good indication that you are doing the best to your ability to save up for your future.

Saves you time

Umbrella companies will make sure to go to the lengths to help independent contractors. They will help manage the business and will take care of the admin work such as payslips and deductions. A breakdown of the finances will be reflected on the payslip such as the amount that they have earned and deductions.

As an independent contractor, all you need to do is submit a timesheet every week and the umbrella organization will make sure to give you the right figures for the payslip. The wages will then be deposited to your bank account and contractors do not have to worry about paperwork and any admin tasks that are related to running a business.

In conclusion, umbrella organizations are designed to help independent contractors focus more on their work and just leave the paperwork to the experts. This will help them save time and energy.

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