Best Umbrella Company
It looks like Umbrella Companies are the preferred choice of Government these days. The market has grown from almost nothing when IR35 came out in 1999 to more than 200,000 contractors using them now. The Best Umbrella Company news for those that own or run them is that instead of forcing contractors down the IR35 route the Government is quite happy for contractors to take this route rather than the Limited Company route.
The new IR35 tests appear to show most contractors caught by IR35 forcing them either to pay the tax or, more likely, choose the best Umbrella Company route for them. Also, the Government’s decision to force contractors who work in Government departments and who earn over £220 a day and have been there six months to prove they are not caught by IR35 will force many Public Sector contractors to go down the Umbrella Company route or end up paying IR35 tax. It was thought that, in the beginning, they were a device to help contractors avoid taxes. However, they operate completely legitimately and are now part of the establishment and mainstream.
It looks like the Government much prefer to deal with a few hundred brollies rather than to deal with hundreds of thousands of contractors individually. Indeed the Government appear to be relaxed about allowing contractors to claim expenses with the best outfits rather than claim lots of tax expenses if they had set up Limited Companies. One would expect that in the future there will be lots more Umbrella contractors than the current 200,00 contractors. it looks as if it is the Government’s objective to get contractors out of Limited Companies and into Umbrella Companies. The best Umbrella Company outfits will be delighted by this and ready to take advantage.
For a selection of good Umbrella Companies check out Which Umbrella Company