Getting insurance for UK work whilst using an umbrella/billing partner from abroad?

[UncleRoger]

PREMISE: I have read the First Timer guide, especially point 14 and have searched the forum for “overseas insurance” but didn’t get much, hence the new topic.
Hello all,
I’m a EU citizen who studied and worked in the UK for 6 years before moving away and begin contracting as an operations analyst (I’m not an It contractor, none of my deliverables are related to IT). I specify this because I have a NINO, UK bank accounts and previous work experience, although I do not have UK address at the moment and I may not get it for a while. I have now landed a 6 week contract in the UK and I have been asked for

Professional Indemnity Cover
Contractor’s Employer’s Liability Insurance
Contractor’s Professional liability Insurance

Crazy as it sounds, it’s the first time I have been asked for something like this. Also, so far, in my other engagements (which were all outside the UK) I’ve had an agreement with an offshore umbrella company that would do my billing (for both time and expenses) and then pay me.
They say that they want to be presented, as usual, as a billing partner, but they have no means or will to provide for the insurance and indemnity cover I am being requested for now. Historically, we have always agreed that they were only my billing partner and that they would contract me out to my clients, but they would never take, for example, responsibility for the work I was delivering etc.

I tried to get an online quote about what these insurances could cost for the requested cover of up to 1 million pound and it doesn’t seem to be a lot of money (some 200 pounds a year?). This is, however, if I had a UK company.
My question is
1 - would there be UK insurance providers from which I could buy the required type of insurance without having to have UK-based company?
if not,
2 - should I just drop my overseas billing partner and go for an umbrella company here in the UK?
and, finally, if yes,
3 - what are the most professional and reputable umbrella companies that could cater best for my situation in the UK?

At the moment I am looking at 30-35 days of work at 450 GBP per day plus travel, board and lodging expenses covered in full.
An extension for as many working days is likely, although not certain, which would make me exclude going for the Limited Company. I read some of the articles regarding pros and cons of umbrella vs limited and it looks like, in my situation, umbrella would make more sense...
Any inputs would be much appreciated.

Many thanks

[TykeMerc]

1. Possibly, but it seems unlikely that they will insure an individual who isn't incorporated in some way or a sole trader.

2. Hard to know, but many clients and most agents are very nervous about dealing with an overseas Umbrella, many won't even consider doing business with them. With the info you've posted I'd take the safe approach and say yes.

3. There are loads, Lisa from Contractor Umbrella posts regularly on CUK. I used OrangeGenie in the past and they were fine, but that was ages ago. I also had dealings with Giant that lead me to recommend against using them.

You'd need expert advice on how your tax affairs are best managed in your situation.

[UncleRoger]

Thanks for the info.

I tried a couple of umbrella company calculators and the figures they provided for take-home pay were unexpectedly low.

If I were to set up a limited company, would the following be wrong?

Expected gross income for the 6 week assignment: £425 × 30 days = £12,750
Tax free allowance for 2015: £10,600
The Corporation Tax rate for company profits from 1 April 2015: 20%
Take-home pay: £12,320

Basically, I'd pay 20% on the income exceeding the £10,600, right? Or it doesn't work like this anymore?

Thanks

[SueEllen]

You forgot accountancy fees

[UncleRoger]

Yes, and NI contributions on everything, including the income tax free allowance.

Checking my options now, thanks for the inputs.

[UncleRoger]

Hi again,

my contract is about to be extended until the early spring of the coming year. So far I was paid to the offshore umbrella I mentioned before, and some of that money is about to come back to me in my UK accounts to pay for cost of living and such. Bearing in mind that I'm not a UK national but that my stay in the UK is now looking longer than a quick visit of a few weeks, I guess it's unlawful of me to keep on being paid through the offshore umbrella? Should I just get a UK ltd?

Thanks for any advice.