If you are a contractor, probably one of your biggest hassles is taking care of the paperwork. This is understandable as you are probably a specialized professional and that profession is not administration. However it is now possible for a contractor to relieve themselves of these annoying administration tasks by hiring an Umbrella company like http://umbrellacompany.uk.com to take care of the admin for them. An umbrella company can make out invoices and receive any due payments as well as handling any workers salaries and costs. They do these things fully aware of both a worker’s rights and the laws pertaining to taxes and NI payments which they will make on the contractor’s behalf.
With all these administration tasks taken care of for them, a contractor is free to ensure that their job in hand is being carried out correctly or can spend the extra time to line up their next job. The umbrella companies employ professional administrators and will often assign one to any one contractor, ensuring easy communications and co-operation. Obviously in order to pay a contractor’s workers and make the relevant payments to the tax authority and NI, the contractor will have to furnish the umbrella company with weekly timesheets for all their workers but a contractor’s administration duties may just stop there with the umbrella company taking care of all other administration tasks.
As professional administrators, the umbrella company’s staff is fully aware of all rights that a contractor’s workers are entitled to including holiday payments as well as any other compensation that they may be entitled to, something a contractor may not always be up to date with. This ensures that a contractor does not have to waste time with workers disputes or requests, their legal entitlements will have been met. The other area in which an umbrella company is of great use to a contractor is that they will create any invoices that may be required and make the collections on those invoices.
This means that although a contractor has not had to make out any relevant invoices, they can quickly and easily contact the umbrella company’s representative looking after them and find out any and all outstanding invoices. Of course the umbrella company will provide the contractor with copies of all the paperwork they may raise on the contractor’s behalf and the contractor can rest assured that that paperwork will comply with any auditor’s requirements. The contractor will of course have to provide the umbrella company with their banking details in order for the company to make payments into the contractor’s account once they have made a collection from one of the invoices.
Any fees that the contractor and the umbrella company have agreed on can be taken by the umbrella company, from the funds received, ensuring of course that those fees are correctly and accurately accounted for in the contractor’s accounts. Not only will an umbrella company take care of the administration requirements for contractors based in the UK but can also take care of the administration requirements of an off shore contractor.