Setting un umbrella company

[pritlee]

Dear people



I am from an IT field and I have been doing contract job up until now. IT contractors have to go either with Umbrella companies who do their taxes or have their own company…..

In case someone does not know, umbrella companies prepare peoples wages and do taxes for the people registered with them e.g. Me, the agency who got me a contract job and Umbrella company…..the company I am contracting for pays to my agency, my agency who got me the job sends the gross pay to the umbrella company who does my taxes and NI and produce a wage slip (charging me some money for this)

I am interested in setting up an umbrella company to do other people’s taxes….. I’d like to start with straight forward contractors who get set hourly rate with set hours so the NI and TAX don’t change……

Can anyone tell me what I need to do and learn before I can set this up?
Anyone ever set one up before and knows anyone who do this for living?
I am going to buy the Sage software to calculate tax and NI……. I will get training for Sage.
Do I need to get an accountant involved? If yes how much input would the account have?
How do I deal with the HMRC? E.g. do I need to tell them I’d be doing other peoples taxes and things?

I know I am asking to many questions and you have spent many years earning your knowledge but I have been made redundant one too many times and I want to start my own business so if you have any knowledge or wisdom you can bestow upon me it will be highly appreciated….

Thanks a lot

Prit

 

How much do you know about payroll?

Payroll can be complex. Saying that a person's rates and hours don't change doesn't make them a simple case payroll-wise. A few examples: their pay could change if they are off sick or on maternity leave, they could have pension contributions - if they are contracted out of the SERPS then their NI rate will be different - if they have another job or different circumstances then their tax code could be different.

Payroll software can do the bulk of the work but it's not magic, you need to know the rules and regulations around payroll to make sure that each person's payroll record is correctly configured for the software to produce an accurate payroll each month.

 

[tkammyus]

Best option is to work with an accountant if you don't know Payroll... or or with an agency as introducer... I know an umbrella company that pays very good commission just for introducing IT consultants to them ( is monthly payment per consultant not only 1 off fee)

Let me know if this works better for you I 'll give you their phone number.