“With HMRC focusing a billion pounds worth of resources into identifying and fighting tax avoidance this year alone, more and more companies who require a flexible workforce are turning to the protection of a legitimate umbrella company. The irony is that, once an organisation has found a good umbrella company to partner with them and their contractors, they are discovering that both parties have been missing out on substantial financial benefits. At that point they begin to ask themselves why they ever chose another route" - Danny Clowes, Director Intelligent Umbrella

For most companies who use contractors, partnering with an umbrella company represents an efficient alternative to direct employment. The umbrella solution avoids the pitfalls of using pseudo self employed individuals or non-compliant contractors. If deemed to be the employer of these individuals, a company can expect to face up to 7 years liability for any unpaid tax or national insurance in addition to other employment related claims

In recent years there have been a large number of legal cases questioning the employment status of contractors. Simply finding themselves defending actions for compensation can be financially and operationally painful for a company, regardless whether the argument is won or lost at the end of the day.  The simple fact is that if a company works with an umbrella company who supply the services of a contractor, compensation claims and IR35 risks are removed completely.

Using the services of an umbrella company offers a compliant way to maintain a flexible workforce whilst avoiding the cost of direct employment. It also presents an opportunity for the individual to apply expense allowances as they submit invoices, effectively generating a higher tax threshold which saves them money. Intelligent Umbrella’s industry leading online system makes administration for both the contractor and company easy and trouble free. Companies receive a single consolidated invoice and management information without it costing them a penny.

Intelligent Umbrella’s Key Benefits include:

• Online submission of timesheets (also available via telephone)
• Consolidated invoices
• Online timesheet approval prior to invoice being raised
• Improved flexibility
• No IR35 worries
• No legal pitfalls
• No employers NI
• Increased take-home for the contractor or employee
• No PAYE admin
• Reduced administrative costs, including recruitment
• No agency fees, if you decide to employ the contractor

We can save your business time and money, work with you to ensure that contractors are available when you need them for the hours you need them and at the rates that you want to pay. All at zero cost to you.

To find out how we can benefit your company call us today on 0845 838 8800