The Popularity Of Umbrella Companies Explored

The popularity for using umbrella companies has been increasing for a while, mainly due to the introduction in 2000 of the IR35. However – the increase in popularity of umbrella companies can not be put solely down to the IR35 – people also like them as they take away so much of the administrative bother and burden of running their own limited company.

Umbrella company services can include; doing your invoicing, calculating, paying your tax and NIC, processing your expenses and even arranging your agency contracts dealt for you. This is just for starters, this type of service makes contracting work so much less stressful. If the thought of getting caught up in your company books and paperwork gets you down – don’t do it, get someone else to. After all – that is probably not your area of expertise at any rate.

Another reason that umbrella companies are gaining in popularity is the fact that one can cut expenditure while continuing to employ a good standard of employee. It would be horrendously expensive if a small contractor started their own limited company and then had to hire staff withy the requisite amount of knowledge to deal efficiently with current legislation, health and safety, worker regulations, wage laws, contacts and so on and so forth. Whereas, with an umbrella company one can get the advantage of having a large, well trained and experienced group of staff while still paying a set, budgetable amount.

So – it’s not hard to see why the popularity of the umbrella company is on the increase, basically – one gets to concentrate on doing the things that one is good at and the things that actually earn you money while freeing yourself from the administrative burden of running a company. One can also feel at ease that they won’t be transgressing any rules that could lead to fines or criminal action.