Q. Why should I use an Umbrella Company?
A. An umbrella company is best suited to individuals who either do not want the hassle of running their own limited company, have contracts that are caught by IR35, are first time contractors, have short term contracts or are overseas nationals contracting in the UK on a temporary basis

Q. What is IR35?
A. IR35 requires a contractor to be taxed in a similar way to an employee, if they would have been considered an employee but for the limited company that they are working through. For contracts that are caught by IR35, there are now very few advantages in using a personal service company over an umbrella company.

Q. Do I need to become registered for VAT?
A. No

Q. Do I need to pay corporation tax?
A. No

Q. What expenses can I claim?
A. Contract Payroll is very careful with procedures for claiming expenses. Provided that your workplace is considered 'temporary' by the Inland Revenue, we can usually claim a generous level of travel and subsistence expenses in accordance with our expenses policy.

Q. What is a temporary workplace?
A. A temporary workplace is a place that an employee attends in the performance of their duties of employment to perform a task of limited duration. A workplace is not considered temporary if the employee can expect to work there in a continuous period of work lasting more than 24 months, of if the employee works there in a continuous period lasting for all or almost all of the duration of the employment

Q. Do I get a form P60 at the end of the year?
A. Yes - we are effectively running a payroll for you, deducting post-expense tax and national insurance and paying this to the Inland Revenue. At the end of the year you receive a P60 detailing these amounts.