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View Full Version : Advice sought re leaving my umbrella company



jockkkk
30th January 2012, 16:03
Hi all,

My partner has worked as a contractor for 3 months and her contract is getting extended. She had Parasol recommended to her by her agency and the fees are eye watering. If she were on the £200+ per day then that's one thing but shes not. She is a bit scared though of going self employed. I've had a look at what she needs to do and would really appreciate it if anyone could pointout what I've got wrong:

1. register as self employed on hmrc website
2. set up a DD to pay her NI
3. possibly register on companies house?
4. possibly get an accountant for help with accounts

5.....she;s been told she has to pay employers NI - how does she go about doing this?


I don't believe a business account is a must due to the few payments going in an out. A family member has been self employed as a dentist for 15+ years and is organised with confirming her business transactions on her bank account so we'd rather not set up one if we don't have to.

In a nutshell she's scared that something will go wrong which is fair enough. I have to confess the parasol fees and eye watering and we can't afford to lose so much money.

Any advice would be very much appreciated.

Thanks

northernladuk
30th January 2012, 16:15
It sounds like you both need to read the newbie guides to the right. This covers everything you need to know about the differences between LTD's and Umbrellas as well as some guidance as it isn't really worth going LTD until you start breaking around £30k (I think, correct me if I am wrong)

There is also an umbrella section on the forum with a number of the umbrella owners actually posting.

We also had a list of the best Umbrellas for 2011 as voted by other contractors so can try the ones that other people have recommended.

Guides are over there--------------->

I can't comment on Parasols fees but remember you are not losing money, you are paying for a service.

jockkkk
30th January 2012, 16:20
Great thank you, I'll be interested to see who is voted as the best umbrella company.

TheFaQQer
30th January 2012, 16:44
Hi all,

My partner has worked as a contractor for 3 months and her contract is getting extended. She had Parasol recommended to her by her agency and the fees are eye watering. If she were on the £200+ per day then that's one thing but shes not. She is a bit scared though of going self employed. I've had a look at what she needs to do and would really appreciate it if anyone could pointout what I've got wrong:

1. register as self employed on hmrc website
2. set up a DD to pay her NI
3. possibly register on companies house?
4. possibly get an accountant for help with accounts

5.....she;s been told she has to pay employers NI - how does she go about doing this?


I don't believe a business account is a must due to the few payments going in an out. A family member has been self employed as a dentist for 15+ years and is organised with confirming her business transactions on her bank account so we'd rather not set up one if we don't have to.

In a nutshell she's scared that something will go wrong which is fair enough. I have to confess the parasol fees and eye watering and we can't afford to lose so much money.

Any advice would be very much appreciated.

Thanks

If she is self-employed, then there is no company, so no need to talk to companies house.

Depending on the relationship between her and eventual end-client, then self-employed may not be a possibility. Whilst some clients will consider this if you are going direct, if there is an agency in the mix, then I'd be astounded if they will be happy with the idea of her being self-employed rather than umbrella / Ltd.

It might be worth sounding out other umbrella providers - there's been a spate of threads against Parasol here recently, so I'd start with talking to someone else.

jockkkk
30th January 2012, 16:52
Thanks for the info.

She got what she thought was an everyday agency job then found out it was contracting which is why this is all so new, it wasn't really a choice. I suspect at the very least she should change from Parasol, I've only read bad things. Actually no, people say they pick up the phone quickly!

MarillionFan
30th January 2012, 20:39
Love it. A racist jock.:laugh