Let's identify if you will benefit from an Umbrella solution?
advice
1. Are you a contractor who needs a simple start-up business method and does not want the administrative overhead associated with running your own business?
2. Are you a contractor who requires a cost effective short term solution for a one-off contract?
3. Are you a contractor worried about being penalised by IR35 or MSC legislation?
If the answer is
'Yes' to any of the above key questions, then let UOU solve your problems and take a closer look at the
Benefits you can expect from UOU, included as standard within our one-off administration fee.
IR35
IR35 legislation was introduced on 6 April 2000. The aim of the legislation is to eliminate the avoidance of tax and National Insurance Contributions (NICs) through the use of intermediaries such as Personal Service Companies or partnerships, in circumstances where an individual worker would otherwise...
- for tax purposes, be regarded as an employee of the client: and
- for NICs purposes, be regarded as employed in employed earner’s employment by the client.
The legislation ensures that, if the relationship between the worker and the client would have been one of employment had it not have been for an intermediary, the worker pays broadly tax and NICs on a basis which is fair in relation to what an employee of the client would pay.
Source: www.hmrc.gov.uk/ir35
MSC
Managed Service Companies (MSC) legislation was introduced on the 6th April 2007. The MSC legislation applies to individuals providing their services through intermediaries, which meet the definition of an MSC. All payments received by individuals providing their services through MSCs are subject to PAYE and National Insurance contributions.
The MSC legislation applies equally whether an MSC is based within or outside the United Kingdom. People who are not affected by MSC legislation are those who are working through an umbrella company.
An MSC is a form of intermediary company through which workers provide their services to end clients. The definition of an MSC in the legislation encompasses both ‘composites’ and ‘managed personal service companies’.
In essence a scheme provider promotes the use of these companies and provides the structure to workers. The worker (although a shareholder) does not exercise control over the company.
Source: www.hmrc.gov.uk/employment-status