My son needed an an umbrella company or a ltd company started up, unfortunatly the contract he was going for had fell through.

Now he has been offered another contact, so we need to go downt he route of finding him another umbrella company, now there are a few out there. There are 2 umbrella services we are interested in so far, I was wondering if anybody had any expirence with working with them?

Vecon umbrella company (http://www.vecon.co.uk/index.htm) - is an employment management company offering umbrella serivces to IT and engineering contractors based in oxford

and then theres

Danbro umbrella company (http://danbro.co.uk/umbrella-company/umbrella-company.htm)- I have heard quite alot about them, some good reviews, but then they're rate seem slightly higher than what vecon are offering, danbro umbrella are based in blackpool

I did post a while back but for some reason i cannot find it! ohwell, advice from contractors would be excellent, It maybe a risk him starting his own Ltd company at the moment so for now I think it maybe safer for my son to work under an umbrella and concerntrate on the job in hand rather than worrying about accounts etc

many thanks

mike
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Have a look at the professional contractors group web site here:

http://www.pcg.org.uk/cms/index.php

Good advice on IT35, umbrella etc. Also have a look at the sticky here on limited company.

Personally I do not advise the use of an umbrella company if outside of IR35.
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Was this the thread you were after

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=79756

I'm an IT contractor and would ideally recommend going down the LTD company route
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Hi

I looked into Umbrella companies when I thought I needed one when I was using a freelancer site who insisted in dealing only with Limited Companies or Umbrella companies (I did not have to get one in the end as I did not win that particular contract) but my research found that Umbrella companies were very expensive and if you get a Limited Company then it works out cheaper in the long run.

Limited company kits on amazon cost ?1.03

Publisher: Lawpack Publishing Ltd; 6Rev Ed edition (3 Oct 2005)
Language English
ISBN-10: 1904053939
ISBN-13: 978-1904053934

This pack looks like it contains all the necessary documents to set up a Limited Company or there are companies who offer company formations. Think it costs ?0 to companies house to register.

Also there are threads on here about Limited Company free courses at Inland Revenue which gives you information about Companies House and tax issues of a Limited Company.

Alison
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I would avoid any of the big names, as they are inflexible (Giant group especially, in my experience).

I can personally recommend D J Colom and Co - http://www.djcolom.co.uk - if your son calls up, please mention that "yorkshirejames" on this forum mentioned their name. David has a couple of umbrella companies (one UK and one offshore) and also offers a full limited company accountant service.

Cheers
James
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I can personally recommend Comply Umbrella Ltd based in Milton Keynes. If you call and speak to Leanne Madges, she will be able to help.

08450 555456

Adam Armstrong
Armstrong Payroll Solutions
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As a contractor who was with one of the big companies (Parasol) I wouldn't recommend umbrella companies at all - with Parasol they overcharged me on tax for eighteen months, to the tune of ?00 per month. That's not "tax-efficient", that's just f***ing inefficient.

Forming a Ltd company, I'm saving money on my tax bill even if I include the full monthly cost of having an accountant - by my rough estimates, I'm easily ?-400 per month better off. That, as they say, is real money.
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Hi

I looked into Umbrella companies when I thought I needed one when I was using a freelancer site who insisted in dealing only with Limited Companies or Umbrella companies (I did not have to get one in the end as I did not win that particular contract) but my research found that Umbrella companies were very expensive and if you get a Limited Company then it works out cheaper in the long run.

Limited company kits on amazon cost ?1.03

Publisher: Lawpack Publishing Ltd; 6Rev Ed edition (3 Oct 2005)
Language English
ISBN-10: 1904053939
ISBN-13: 978-1904053934

This pack looks like it contains all the necessary documents to set up a Limited Company or there are companies who offer company formations. Think it costs ?0 to companies house to register.

Also there are threads on here about Limited Company free courses at Inland Revenue which gives you information about Companies House and tax issues of a Limited Company.

AlisonThat's all very well, but if you fall into IR35 this MAY not make you as tax efficient as you could be through 'other' routes.

There's no point saying "Ltd companies work out cheaper in the long run", when you then end up facing a massive tax bill from the HMRC at the end of the year.

The correct answer is; there is no black and white answer. It depends on the individual and their circumstances
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Umbrella's waste of time now with the legislation, all the umbrella company will do is setup a ltd co with you as sole director now anyway so now different to you doing it yourself and being in control.

I was with brookson a couple of years back, they went from being great to truly appaling in a matter of months.
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Umbrella's waste of time now with the legislation, all the umbrella company will do is setup a ltd co with you as sole director now anyway so now different to you doing it yourself and being in control.

I was with brookson a couple of years back, they went from being great to truly appaling in a matter of months.

An umbrella will do precisely the contrary. An umbrella company will have a number of contractors in, none of whom will be directors, all will be employees, and everything paid as payroll (usually minimum wage plus bonus plus non-taxable expenses).

Gary - you are thinking of a Managed Service Company (MSC).
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You are right James but I thought they were outlawed circa Jan 2007? I know I was with an umbrella but I'm sure the only way after that the umbrella's operated was by setting up MSCs? I'm not an expert on the subject though :)
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