Umbrella or Composite Companies Many organizations have appeared over the past few years offering a number of services to contractors. Better known as umbrella or composites companies, they will take away a lot of the administrative burden in operating a limited company from you. The are a number of advantages and disadvantages from using an umbrella and they are as follows:
Advantages
- A good short term limited company solution. You will not have to get involved in the cost and time required to form and dissolve a company for a short term assignment.
- The umbrella company will handle all of your statutory returns such as PAYE and VAT.
- Little administration on your part. After setting up, you will only need to complete your timesheets and expense claims.
Disadvantages
- Cost – Umbrellas / composite companies are commercial operations meaning they seek to make a profit. However the extra cost is relatively small.
- It is not your company. You will have no control over the company, it is simply a vehicle to process your transactions.
- There is often some lag between Faststream paying the Umbrella / Composite company and them paying you. This is usually down to the Umbrella company waiting for funds to clear their account before paying you.
With all of the different methods of contracting there are pros and cons. It is down to you to decide which format best suits your circumstances.
Below are a number of umbrella companies that we have worked with and have found, over time to be generally reliable. We would urge you to speak to all of the companies and decide for yourself who would best represent your interests. Personal recommendations from other contractors you know is often a good way of finding the right partner for you.
FiletravelBrooksonsCharterhouseFaststream Recruitment Limited accepts no responsibility for any loss or damage suffered as a result of any person, company or organisation using the services of any of the companies named above.