Compliance

Choosing an umbrella company by definition means your compliance with HMRC is certain. Our company can create the best possible income retention for your personal situation while remaining compliant with all legislation. There is a limit to what is possible and if you have read an advertisement from a company claiming that they can do better for you then the majority of umbrella companies can, this is most likely a fraudulent company. As such, it is highly advisable to avoid these types of companies unless you are looking to break the law. There have been the additions of many different formations in the past years which advertise as being made to help contractors keep more of their earnings. Some examples of these include offshore or employee benefits trusts and managed service companies. In 2007 legislation was enacted that separated umbrella companies from single person entities and composite structures. Using an umbrella company means avoiding any IR35 investigations and ensuring complete HMRC compliance.

Our company is well established in this field and has amassed consistent long term clientele as we have been seen to provide a consistently high level of service. We can use up to date tax legislation in the best possible manner to retain the highest levels of income for a contractor.

GAAR

GAAR was brought in in July 2013 to counteract tax advantages which may arise from abusive tax practices. The GAAR understands that contractors gain tax advantages as the main reason for the legal arrangement and is engaged in counteracting such tax advantages.

Offshore Employment Intermediaries

In the 2013 budget the UK government directed that changes would be made to regulations relating to Offshore Employment Intermediaries so that a deterrent against NIC and PAYE would be created.

Onshore employment intermediaries

The aim of the legislation was to make sure that recruitment agencies who hire self-employed traders who are actually employees (working on behalf of their long-term clients) take responsibility for deducting PAYE income tax and NIC’s from their gross pay

IR35

The IR35 legislation was aimed at contractors who had found a way to dodge tax according to the government. This legislation aimed to increase NIC revenue by implementing new legislation on the service industry.

Managed Service Companies

From the beginning of contractors providing services there have been options for how a contractor performs the tasks of meeting legal obligations while working for themselves.