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freelancer/sole trader using umbrella company?

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    freelancer/sole trader using umbrella company?

    Hi,

    Need some help here please.

    Currently i have a side job working as a freelancer or sole trader (not sure what the difference is) where i advertise in shops etc to provide IT support and the same is provided. I am making a good few grands income this financial year. This is the first year i have worked liked this.

    Can i use an umbrella company to complete all my taxes, NI etc?

    i don't own any company. I don't want to setup a company due to the hassle.
    i do have a salary earned job earning around 17k per year.
    They is no agencies involved.

    Any help is well appreciated.

    Thanks
    David

    #2
    Originally posted by wor4ing View Post
    Hi,

    Need some help here please.

    Currently i have a side job working as a freelancer or sole trader (not sure what the difference is) where i advertise in shops etc to provide IT support and the same is provided. I am making a good few grands income this financial year. This is the first year i have worked liked this.

    Can i use an umbrella company to complete all my taxes, NI etc?

    i don't own any company. I don't want to setup a company due to the hassle.
    i do have a salary earned job earning around 17k per year.
    They is no agencies involved.

    Any help is well appreciated.

    Thanks
    David
    Sounds like you need a half way decent accountant rather than an umbrella.

    I'm sure that there are some who are on these fora or who could recommend somebody.

    (Not what we do, but sounds simple enough job).
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    Comment


      #3
      A freelancer is someone who works for clients. This can be done as self-employed = sole trader where fees are paid directly to you, or through a limited company, where you are the employee, director and shareholder of the limited company, and fees are paid to the ltd co.

      A ltd co offers limited liability, which means that normally if the company goes bankrupt, you personally won't be liable for the debts. If you as a sole trader can't pay your debts, you are personally liable. Creditors can come for your house if you don't pay them.

      An umbrella will take your fees, deduct their fee, income tax, employers national insurance, employees national insurance, and probably some other deductions, and then hand over whatever is left to you.

      As a sole trader you are considered self-employed and come under a different NI scheme.

      You need an accountant, not an umbrella company.
      Down with racism. Long live miscegenation!

      Comment


        #4
        You just need to sort out tax liabilities for the additional freelance income by way of the annual self assessment which will take into account your existing salaried work (presumably this is already via PAYE and the tax handled by whoever is paying you the salary).

        An accountant is only worth having if you are or risk breaking into higher tax bands or have significant expenses you want to make sure you can claim legitimately against tax, so need someone to help you become more tax efficient and above board, otherwise keep it simple and sort it out yourself via Self Assessment. For only a few grand of freelance work the cost of an accountant likely doesn't make sense.
        Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

        Comment


          #5
          Originally posted by wor4ing View Post
          Hi,

          Need some help here please.

          Currently i have a side job working as a freelancer or sole trader (not sure what the difference is) where i advertise in shops etc to provide IT support and the same is provided. I am making a good few grands income this financial year. This is the first year i have worked liked this.

          Can i use an umbrella company to complete all my taxes, NI etc?
          Hi David

          You wouldn't be able to work via a compliant umbrella company as the work is more ad-hoc. Umbrella companies have to guarantee the worker minimum hours which wouldn't be feasible for you. Plus you would be better off financially self-employed or Ltd depending on the total income for you i would have thought

          Comment

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