How To Choose An Umbrella Company?

Limited Companies or Umbrella Companies? Paul Rawlings Interview
Should contractors use Limited Companies or Umbrella Companies? Paul Rawlings from Nimbus Accounting Was kind enough to take his time to explain the benefits and disadvantages of using both.

Paul also provided some great information about what to look for when choosing an accountant and some the questions that you should be asking any accountant he speak with.

There are also a couple of great tips to improve your workflow when doing your books if you decide to use a limited company.

For more information about paul and Nimbus Accounting

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20 replies
  1. Contractor Guides
    Contractor Guides says:

    Thanks for your comment Acree. Since doing this interview I have signed up with Xero and it really is a great system.

  2. Queenie Mccasland
    Queenie Mccasland says:

    I still don;t understand why it's important to have a specialized accountant? I mean, a qualified accountant should be able to do all accounting work, be it for a contractor or for a company.

  3. Contractor Guides
    Contractor Guides says:

    Thanks for your question Queenie. You are right regarding the accounting process being the same but a accountant who specialises in working with contractor and freelancers will quickly be able to do a contract audit and spot any issues regarding IR35.

  4. Acree Kardos
    Acree Kardos says:

    I agree- having an accountant takes all the books off your shoulder but still! Isn't it the contractor who will have to answer to HMRC in the end?
    Although I've no doubt that a professional accountant would always do things the right way but still contractors have to worry about accounts when they are acting as director of their respective company.
    Any thoughts Paul?

  5. Pomeroy Eastep
    Pomeroy Eastep says:

    is it the umbrella company who makes the choice for contractor or does the client still has the choice? For instance, if a client wants to work with a contractor XY, would it still be possible to hire the contractor directly even if he or she works for through an umbrlla?

  6. Pompa Dwight
    Pompa Dwight says:

    great advice- i think you're perfectly right about talking to accountant in person. I had a bad experience where the problem arose because I wasn't talking directly to the accountant

  7. Danette Heisenii
    Danette Heisenii says:

    there is no point going for contractor umbrella if you can manage limited co. You can save plenty of money through your own company but still so many people choose umbrella maybe only because they're not ready to take care of their own business

  8. Ilse Gallimore
    Ilse Gallimore says:

    thanks for all the info- great interview. Btw, I would like you to talk about choosing the right contractor umbrella in your next interview. thanks in advance

  9. Delphine Loticius
    Delphine Loticius says:

    @3:20- Then why it's important to have substitution clause in a contract if you're a contractor. I will appreciate if someone can reply to my query

    @4:40, you really mean that? 🙂

  10. Stacia Normandin
    Stacia Normandin says:

    me too- i know its easy to choose a company based on certain parameters but i'd love to hear some expert helping us with that


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