Pulse Umbrella – Why we provide the best umbrella company services
To enable you to decide which is right for you as a contractor, you need to know the pros and cons of both PAYE umbrella company services like Pulse or going down the limited company route. Here, we’ll discuss the match-up that is umbrella vs limited company…
Whether you’ve been contracting for years or are simply testing the water before you decide to take the plunge, an umbrella company such as Pulse is a great option if you simply can’t face all the hassle, admin, tax issues, stress and responsibility of running your own company. As an umbrella company, Pulse allows contractors to benefit from being legally tax efficient, without having to worry about the dreaded IR35 contractor’s tax. This is because as a Pulse member, you’re classed as employed by us.
It’s little wonder we’re thought of across the whole contracting spectrum as the best umbrella company around; we do all your invoicing, chasing and collection of payment from your agency or end client, plus calculate your tax and NI contributions at source. And because we also offset legitimate business expenses against your taxable income, you can be sure your take home pay is as tax efficient and attractive as possible.
When you consider the simplicity and tax efficiencies of working with a PAYE umbrella company like Pulse, managing your own limited company sounds a whole lot more like hard work! Forming your own personal service company means that you will be a company director, operate the company bank account, and be responsible for the affairs of the company.
It is fair to see that the limited company route can be hugely complex. The new MSC legislation has made this a high risk option if you seek help for the day to day chores as the supplier of these services may at some point in the future be deemed to be a Managed Service Provider. If so, you may be liable to additional taxes that will backdate to 6th April 2007.
As a limited company, you are responsible for maintaining company accounts and compliance with all company and other statutory matters and there are various deadlines which, if missed, could incur penalties. You are also responsible for day to day issues such as invoicing, keeping a simple accounting system and ensuring all forms, returns and accounts are filed by the due dates – and then there’s the cost of liquidating the company if you decide to cease trading.
Many contractors, particularly first timers, do tend to struggle with these responsibilities.
On the flipside, administering a limited company could be the right choice if you have complex financial affairs, multiple income streams or because you’ve had specific advice from an accountant that it’s the right thing to do.
