A contractor earning £350 per day for a 6 month contract could take home £1,217 per week after paying £532 in income tax and national insurance contributions. That represents a percentage return of 69.5%. A contractor outside of IR35 could, with allowable expenses, receive a return equal to more than 80% of their gross contract amount. Switcha Contractor will help you find the best possible deal for your contract.
An Umbrella Company is a payment intermediary that will make sure that you comply with taxation rules, freeing your time to focus on your work. Your Umbrella Company will work with your Recruitment Agency to allow the flow of funds from the end client that you are working with to your personal bank account.
Whether you’re a long-term contractor or new to the market it definitely pays to shop around because there are some excellent deals out there. Switcha will constantly do that for you. Let us know your daily rate and your contact details, and we’ll show you the best deals today.
Contractors and freelancers across any industry can choose to work under an Umbrella Company.
You’ll experience employee benefits that everyone in permanent employment is entitled to, as well as increasing your take home pay through methods that reduce your tax bills. It will also reduce your monthly administration as all timesheets and invoices will be taken care of by the Umbrella Company.
When choosing an Umbrella provider, you need to be certain that you choose one that is compliant with HMRC legislation.
No. Instead you’ll be an employee of the umbrella company. This allows you to experience full employment rights, such as holiday and sick pay.
QAs soon as you have signed up to an Umbrella Company, you’ll need to provide them with proof of ID, your address and P45. They will get in contact with your recruitment agency to request a copy of your contract.
Yes, you can claim tax relief on expenses incurred during your assignment which will work towards reducing your tax bill. You must keep receipts for any expenses you wish to claim.