IR35 - Payroll Umbrella                         

When would I use a  Payroll Umbrella?

If your contract is worth more than £30,000 per annum your best option is likely to be your own limited company.

However, in case your contract pays less than that, or if you are unsure of what to do on a short term contract, the answer is to use one of our umbrellas.
How does it work?
An umbrella is alternative to running your own limited company. It is, if you like, your temporary limited company without any of the hassle of running it yourself.

We do all the work for you and it costs less to run, however it is not as tax efficient or flexible as your own Limited Company - even after IR35. All you need to do is make sure that you send your approved timesheets to us and check your bank account for your money.

How does it work:
The umbrella will:
take over your contract with the agency
invoice the agency on your behalf
run your payroll and pay you net of all deductions
Advantages:
low running costs and / or start up fees
you do not have any responsibilities such as administration
you only pay fees as and when you are actually working
Disadvantages:
your net pay is paid after all statutory deductions whereas you could save a lot if you had your own limited company using the tax free bonus and extended allowable expenses.
the umbrella can only pay you once money is received from the agency.
there is no flexibility to restructure the finances as you can with your own Limited Company
there is no possibility of any engagement meeting the self-employed tests for IR35.

If you wish to e-mail an enquiry please send it to j.ruffatto@360-group.com or telephone 0207 647 9422