Viewing Fed up managing your own limited company? from 6 Limited Company or Umbrella Company - Umbrella Company or Own Limited Company - What is Best for You? Written by Contractor Supermarket

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Fed up managing your own limited company?

 

Ky Smith, Managing Director of the ever popular GoUmbrella company, considers some of the reasons why a contractor may consider moving from managing their own limited company to using the services of an umbrella company:

"There are many reasons why a contractor will decide to close their own limited company and switch to using the services of an umbrella company. GoUmbrella handles many contractors who have made this switch, and the main reasons [we are told] tend to be because the contractor has had enough of:

All the paperwork that comes with running a limited company is overwhelming.

Endless excel spreadsheets!

Dealing with HMRC (a major reason).

Raising invoices on time and in the right way.

Keeping the limited company business bank account balanced.

Filling in all the statutory limited company documents every month.

Limited company compliance with ever changing HMRC rules & regulations."

Is it all really worth it?

This is the big question a contractor faces when deciding if running their own limited company is worth all the bother. Some contractors may earn a few pounds extra each week, managing their own limited company, but is that enough to make the extra drain on time worthwhile?

Only the contractor can answer that, but the chances are it's not. So, why not consider relieving some of your stress, today, and find an umbrella company to do all the work for you?

Why use an Umbrella Company?

Because you can forget the problems of running your own limited company! With an umbrella company there won't be any:

Spreadsheets

VAT

PAYE

Returns

Company accounts

Tax

HMRC

Companies House

Expensive accountants

Using an umbrella company allows the contractor to focus on their contract work, while the umbrella company does their administration & paperwork.

How to move from your Own Limited Company to an Umbrella Company

GoUmbrella's Smith shows how easy it is to make the swith to an umbrella company:

"Simply inform your current limited company accountant that you no longer wish to run your own limited company. Do this by email so everything is clear, and there's a record of your request on file. Ask the accountant to take the necessary steps to close it down. That's all you need to do - simple!"

This is not a difficult task, and the cost is just a few pounds, normally, from a reputable accountant. The contractor is then free to join an umbrella company and start enjoying life again!

 

Visitors who read this article went on to read these articles:

1. Umbrella company or own limited company?
2. Over 70,000 of the latest contract jobs in the UK
3. Umbrella companies and HMRC
4. Umbrella companies and business expenses
5. Quick guide to umbrella companies

 

written on2010-08-22 00:13:24

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