Of all our contractor solutions it is the Offshore Umbrella Company that has proven the most popular with contractors and which is the most rewarding when it comes to income retention (often as much as 90%) and hassle-free admin and paperwork.
How Does the Offshore Umbrella Work?
Offshore Umbrella Companies operate in a very similar way to traditional umbrella companies except that it offers better returns and even less admin whilst providing all the protection you need when it comes to insurance and legal cover. How? By making you an employee of our company and granting you full and total employee status before the law. Our company will assign you the title of ‘professional consultant’ and as such you will be covered through all employee rights and entitlements (as well as protections) and your compliance (via NI and PAYE) will be handled on your behalf. Those entitlements will include things such as holiday pay, holidays, maternity leave, sick pay, as well as Public Liability Insurance (for up to £10,000,000) and Professional Indemnity Insurance (for up to £5,000,000). Any money you earn is guaranteed to be processed and paid the same day that we get it – and the only paperwork you’ll ever have to fill in will be a solitary timesheet that you can hand at the end of the week. Everything else will be handled by us, leaving you to earn more money.
The Benefits of the Offshore Umbrella Solution:
Total Compliance – Thanks to in-house contractor accountants all the solutions are guaranteed to always be compliant and we guarantee that you will never fall foul of HMRC legislation, whether current or upcoming.
Your Own Dedicated Account Manager – You will be assigned your own account manager who will always be there for you at the end of the phone to help with any problems or queries.
Excellent rates of Retention –Offshore Umbrella offers the best rates of retention on the market (sometimes as high as 90%).
Not Affected by IR35 – As you will be an employee of our company you will never again have to worry about IR35 legislation or any other MSC issues.
Full Employment Status – You will be a legal employee of our company and therefore entitled to all of the benefits of full employment as well as covered by all our insurances.
Join and Leave Easily – It’s very simple to join our Offshore Umbrella and just as easy to leave. Unlike other companies we don’t charge leaving or signing fees.
Quick and Easy Access to Your Earnings – You will get your money the same day we get it.
No More Paperwork – Just a single timesheet at the end of the week. No more admin, no paperwork, no dealing with HMRC or accountants. No more hassle.
Are you a freelancer or contractor?
Are you tired of wondering where you will get your next client, worrying about your insurance fees or the taxes you’ll need to pay at the end of the year?
If you are doing any freelance or contract work, whether you are in the IT field or otherwise, then you may want to consider the benefits that can be enjoyed by engaging with an offshore Umbrella company.
How Does It Work?
While it may sound confusing, the structure of the umbrella company is rather simple. It’s a win-win for all parties involved and everyone gets what they want.
The Umbrella company acts as your employer. You are joining the umbrella company on a contracted basis while still receiving benefits of being an employee. In a way you are an employee, but not really, if that makes any sense.
To better illustrate this, let’s take a look at an example of just how all of this would work out.
Let’s say there is a client that needs a database created. You as the contractor have been contracted by the client or agency to perform the work.
The work is completed and delivered to the client. The Umbrella will invoice your client or agency once the invoice is paid; the Umbrella company pays you. They will calculate and pay any taxes that are due and pay these as your employer.
Most times you will be paid out through UK Pay-As-You-Earn (PAYE) and the relevant taxes will be paid. In some cases, you will receive the additional benefits of being able to claim things such as meals or travel as expenses.
Normally as a freelancer or contractor, there are many things that you would have to worry about.
Part of your tasks would include finding the clients to serve. You would then have to consider other areas such as accounting, taxes, insurance and other related expenses, and you haven’t even conducted the work yet!
When you work with an Umbrella company, all that is left for you to worry about is what you do best – The service that you provide or the product you create.
Where does the offshore umbrella company sit in the supply chain?
Three entities make up supply chain – the Umbrella Company (onshore or offshore), the contractor, and the client or agency.
Where do you fall on this list? Let’s have a closer look:
The Offshore Umbrella Company
In a way, this company would act as your “employer.” It’s easy to visualize this entity as your employer because it would seem that way. They are paying you, they are paying your taxes and in most cases they are also paying for your insurance.
The only difference is that everyone wins in this scenario. Although it may seem like an employer – employee relationship, what is really going on is you are gaining all the benefits, while still retaining your status as a contractor.
In some senses you are an employee and enter into a similar contract with the company as your “employer,” but it’s not an employee – employer contract in the traditional sense.
This is you. You are the contractor or “employee.” You provide the work for the umbrella company so they can process your payment.
Once you submit a timesheet, then the Umbrella company can turn around and bill the client.
Once the client has been invoiced, you will then receive your payment once the Umbrella company has paid out all necessary fees.
This works out well for you, as you can retain all of the benefits of being an employee and contractor while not having to worry about all of the other things that you may not necessarily want to do, or have the time to do.
If you were to create a limited company of your own, then there are many things that you would have to worry about. There would be things such as the taxes, accounting and billing and all the cost that come with this. Some of the Limited company solutions will help you remove these costs.
When you work with an Umbrella company all you will need to worry about from here on out would be what you do best – which is doing your job.
What we find is most contractors are interested in increasing their take home pay and reducing their tax which is paid to HMRC. An offshore umbrella company can help with this some of the firms we work with offer as much as 91% retention!
The Client or Agency
This is self-explanatory. The client is who needs the work done, and the agency is the body that introduces you to the client.
The client benefits from this relationship, as it is much cheaper and cost effective for them to hire a contractor to complete the work that needs to be completed.
This is also beneficial to the client as they can get EXACTLY what they need done and benefit from someone with the EXACT skills that they are looking for, instead of depending upon someone in-house.
Even if they were able to hire someone with these skills, what they would find is that they would have to pay more regarding salary, benefits, and other expenses.
All parties involved in this process definitely win.
More Money In Your Pocket
What you do best is provide your service or skills, NOT look after finances. This is why we have partnerships with some of best contracting tax planning experts in the UK. No matter if you’re a freelancer who invoices their clients or contractor working on a day rate, working offshore or onshore we have access to schemes which will provide you with an increased take home pay every tax year.
All the offshore tax planning experts are checked to make sure their schemes are legal, inside of IR 35 and compliant with the current government legislations.
When you work with an Umbrella company, what you are mostly gaining is their expertise and knowledge. They are not only well versed in the area of tax compliance, but they will more than likely be able to advise you on ways to retain more of your income.
There are just some things that you can’t get away from. If you are doing business, you need to protect yourself. If you don’t, then you are leaving yourself open to taking on some severe financial hits that may very well put you out of business.
With an Umbrella company, you’ll get complete insurance coverage. You will receive both public and professional liability to the tune of Public Liability Insurance of £5 million, Employers Liability Insurance of £10 million, as well as Professional Indemnity Insurance of £10 million.
Leave The Administration To The Professionals
At the end of a long workday, the last thing you want to worry about is receipts and administrative tasks.
Many contractors put these off until the last minute because they are so tedious and stressful to do. What ends up happening is they become even MORE stressful because they are put off until the last minute.
When you let an Umbrella company take care of these things, what you’ll find is:
Hands off solutions to all of your paperwork
Never missing another form to complete because it will be done for you
Stress-free work days as you know all of the administrative tasks are being done by the professionals
Never again having to worry about having all of your forms and contracts in order
Having documentation up to date and at your fingertips at a moment’s notice
Does the thought of the HMRC make you concerned?
Well, you’ll no longer have to worry when you decide to let an Umbrella company take care of your needs. You will receive the highest returns on your contract value while at the same time knowing that you are in complete compliance.
Just this alone should be a big reason you should let an Umbrella company handle all of your other needs.
Help When You Need It
Imagine having a concierge for your business. Well, that is what you can come to expect when you deal with an Umbrella company.
If you ever have any questions or need any assistance, you will have a dedicated account manager who can answer any and all of your questions, give you advice or talk with you about any concerns you may have.
Payment When You Want It, Payment When You Need It
With normal companies, with payrolls to wait for and accounts to be credited, it can take quite a while to get paid.
Sometimes it can get frustrating when you complete work and have to wait several weeks to get payment.
This will no longer be a problem with a good Umbrella company. What you’ll find is you will receive payment when they do.
You should receive your money the same day they receive it. Once your money is transferred over, you’ll be able to log into your portal to see your payment details. Which leads us into…
All In One Secure Portal
To help your business run more efficiently and see everything in one place, Umbrella companies can offer you a secure online portal.
These portals allow you access at any time of the day or night for you to log in, check on the work you may be assigned and fill in basic information on any forms that you may need to.
You can also submit your timesheets through these portals and take a look at all of your finances such as expenses, and incoming payments.
All The Benefits Of An Employee
While you are still a contractor, you will still receive many of the benefits that employees receive in a normal employer – employee relationship.
This means that you can get holidays off, sick leave and even other types of leave.
Getting all of the benefits an employee receives, while still being able to maintain your status, as a contractor is definitely a win-win situation for you.
Stop The Invoice Chase
As a contractor or freelancer, one of the biggest problems is getting paid. Unfortunately, when you are a small company or even a one-man (or woman) shop, then it’s easy for someone NOT to pay you.
We are not saying this is always the case, but what’s often the case is you don’t have the time, resources or energy to chase after overdue invoice.
Want to know what else?
The person on the other end, who isn’t paying you, knows this as well. This is what makes it easy for accounts to go unpaid.
When you work with an Umbrella company, they do all the chasing for you. You’ll have someone on your side doing the chasing so that you can get paid for the work that you do.
Leave When You Want
In most cases, the use of an Umbrella company is a painless process that makes it as easy as possible for you.
You will find that the entire process can be done in one day. Should you decide to leave at some point in the future, the process to terminate and leave the relationship will be easy as well.
As Short Or As Long As You Want
As the previous benefit spoke to your ability to terminate the relationship when you want to, what you’ll find is that you can call the shots on how long you want this relationship to last.
If you are just starting out as a contractor, would like to leave it to the professionals to take care of and want to test out the waters, then you can.
If you just don’t want a headache and hassle to deal with all of the administrative stuff and want someone to take care of it for you, then you can do that as well.
The beauty is you get to decide how long this relationship will be.
Is An Umbrella Company Right For You?
There is only one person who can answer this question, and that person is you.
Only you can decide if utilising an Umbrella company will be right for your situation. Here are a few things to consider if you are still on the fence.
If you barely have the time to complete the work, the service or the product that you provide, then you may want to consider using an Umbrella company.
Your time is money, and your time needs to be dedicated to the things that are making a difference in your business. Your time needs to be devoted to the things that are ACTUALLY bringing in money.
If you are running short on time, then you may want to think about this type of working relationship.
Do you currently have the resources to be able to perform the other tasks that are called for in a business?
Do you have accounting software? Do you have software or processes to send out and collect invoices? Do you have someone in place to take care of your tax compliance?
This is just a small handful of resources you may need, so if you have already answered “no” to the questions above, then you may want to consider entering into a relationship with an Umbrella company.
Yes, confusion. Look, we’ll be honest with you. If all you know how to do is the business you got into and are just plain confused about taxes, forms and all of the other “business” stuff, then you need to hand this off to the professionals.
You can spend the next few weeks, months or even years trying to figure all of this stuff out, OR you can just start off on the right foot and have someone else take care of it for you from the start.
If you are already confused and didn’t know you needed things like professional insurance, then perhaps it’s time to get off the fence and get on the side of Umbrella companies.
As you can see, the benefits are many if you are a contractor looking to have someone else handle your other day-to-day business activities.
When you decide to use an Umbrella company you not only have a business that has your best in mind, BUT you also have an organisation that is there to support you in all areas of your business. Let an Umbrella company worry about the rest so you can focus on all the things that you do best.