Umbrella company questions

[srbenson]

Umbrella company questions

I'm just canvassing opinions on umbrella solutions -- Orange Genie or Parasol IT are two that seem most likely, but neither have responded to my enquiries - not very encouraging!

Mainly I want to here opinions from people who have used the services, but I also have a couple of other questions:

1. is it just for contracts that fail IR35?

2. Prosperity4 mentioned an allowance of £21 per day allowed if day exceeds 10 hours including travel.
£5 if over 5 hours. Is this correct?

3. Are there any hidden elements like termination fees?

4. Are all contractors on their books covered by indemnity/liability insurance?

Are there any other questions I should ask.

[John Galt]

I use Contractor Umbrella and they have never given me any problems. It doesn't just have to be for IR35 failures.
I would worry about any company who told me the Inland Revenue were going to give me money just to go to work - which of us doesn't work 10 hours a day - sounds like complete crap to me.

Rest of it depends on the company themselves - happy hunting

[CraigRider]

Don't use Prosperity 4.

[freshblue]

Brolly

I've used Parasol for the last two or so years now and they have been good.

[itallhelps]

Re: Brolly

so srbenson what have you decided to do

[srbenson]

Re: Brolly

Well, Prosperity4 charge 6%; ParasolT didn't respond to my enquiries, so I think it'll be Orange Genie, who did repond promptly and ask my questions, and cap costs at 2.5% of 40/hour..

I'm not interested in the foreign currency loophole approach, seems too risky

PS Most of them use the same expenses calculations -- if you're more than 5.1 miles from work and the day is more than 10.5 hrs including travel. Seems valid.

[WWW ITDoctors co uk]

Re: Brolly

srbenson

Why have you decided to use an umbrella company as opposed to the limited company/accountancy route?

[srbenson]

Re: Brolly

I've had one for several years, lots of pain, compounded by G**nt -- just closing it, revealing more f**kups. And the contract fails IR35 AFAICT (first one for me in quite some time).

[planetit]

Re: Brolly

What’s that you say? Your limited company was fecked up by Giant?

As a (former) fellow sufferer you have my sympathies, but it doesn’t have to be like that. There are good accountants around.

[WWW ITDoctors co uk]

Re: Brolly

Fair enough - I know how frustrating a bad Accountant can be and the one you mention seems to figure high on the expensive and useless scale, according to others on this forum.

I have been in a similar situation to you albeit with a different accountant but it's amazing what difference a change to an immeasurably better and cheaper Accountant can make. I currently spend less than 15 mins a month on my accounts and have no causes for concern.

Limited Company/Accountant is still the best way to go, even if you are caught by IR35 - check out some previous threads on this subject.

As regards IR35 - Is your Agency/Contractor contract IR35 friendly with a substitution clause, mention of a project, etc?

Talk to my Accountant