Anyone on contract work use an umbrella?

[CivicTypeR89]

Does anyone on here use an umbrella company if they're working on contract?

Ive just started a contract job and have been advised to use an umbrella company for claiming expenses etc. I was told by my contractor it puts my hourly rate up a little aswell.

I was just wondering how it works, do i put my expenses through but dont actually get paid them and they use them to make up my wages so i pay less tax?

 

[haitch]

Are you already limited? What line of work?

 

[CivicTypeR89]

Are you already limited? What line of work?

R&D Test Engineer at Nissan Tech Centre. Alot of people their use a company called liquid friday.

 

[haitch]

My advice if you are going contracting full time would be to set up a limited company, avoid umbrella companies if possible.

 

[keithiesbig1]

umbrella company is good to test the water if its a big career change! If it doesnt work then you leave and go back to something that works! If you are serious about contract and want to continue for the future at it, having your own limited company is what you want!

From my mate doing it, he said it wasnt hard and isnt expensive to set-up...... but its all down to your personal circumstances!

Good luck whatever you do