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Last updated: 30 July 2010 at 09:30

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Why contractors use umbrella companies

Whether you are new to contracting, running your own Ltd company or already using an alternative umbrella company; you will find that an umbrella company is the most efficient and safest way of processing your payroll.

Tarpon cater for all types of contractors allowing you to enjoy the flexibility and financial benefits that contracting brings along with the employment benefits of using an umbrella company. Not only do we provide you with a market leading expenses policy but we also assign you with your own personal business manager, who will provide you with unrivalled customer service to remove all the admin and paperwork associated with contracting.

Contractors working through Tarpon also receive £20 million professional insurance cover, which includes £10 million Employers' Liability insurance, £5 million Public Liability insurance and £5 million Professional Indemnity insurance cover.

Don't even try to get your head round it all

The Treasury and HMRC are getting really tough on contractors. There's IR35, IR56 and S660A. They're going after offshore employee benefit trusts and tax-motivated incorporation - people starting up limited companies to avoid tax. The 2006 Budget report targeted offshore and composite schemes for investigation, made some tax avoidance schemes illegal, and will let HMRC claim back taxes from members.

So if you're thinking of using an offshore scheme, composite company or personal services limited company, think again.

If it all sounds like a complex, ever-changing, expensive legal nightmare - it is. And as someone working for themselves, you can't afford to try being your own tax expert.

But it's not all bad news. Not only do HMRC allow flexibility by permitting umbrella companies like us to exist, but they've given Tarpon a genuine and exceptionally good dispensation which means you can claim business expenses, legally and be highly tax-efficient, without needing to send us receipts for a large majority of them.

And the best bit of news is that we can do all your tax for you and keep you entirely legal.

See how much more you can take home by using our free umbrella salary calculator. To speak to one of our tax experts call 0800 434 6402.

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Unit 12, Tivoli House, Wigmore Park Centre, Wigmore Lane, Luton, LU2 9XG, UK | Tel: 0800 434 6402 | Fax: 0845 643 1590

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