Umbrella Company Reviews
Contractors often ask us for Umbrella Company Reviews. We are happy to oblige.
There are two types of Umbrella Company. There are offshore umbrella companies and there are onshore umbrella companies.
The Umbrella Companies HMRC prefer are the onshore umbrella companies. That’s because they get more tax from them.
Tax Avoidance Measures
So, Offshore Umbrella Companies are tax avoidance – but legal tax avoidance. They allow the contractor to keep from 80% to 90% of his, or her, money earned.
Contractors choose an umbrella company or a limited company. The Limited company options returns more to the contractor than the onshore umbrella company. However, offshore umbrella companies return the most.
We have offshore umbrella company lists and onshore umbrella company lists on other pages on this website.
Umbrella Companies Explained
Many of the offshore umbrella companies operate from the Isle of Man.
Onshore Umbrella Companies allow contractors to lay some expenses off against tax. The top umbrella companies are the safe ones.
Contractors can claim travel expenses and overnight expenses against tax as well as a few other things like pension contributions.
Umbrella Company Reviews and Comparisons
With an onshore company you would probably keep about 60% to 65% of the money you earned. With a Limited Company it would be maybe around 75%. With the offshore companies you would keep from 80% to 90%.
There are also companies which operate like the offshore ones but are onshore. They allow contractors to still use their limited companies.
Sometimes, agencies try to steer contractors towards particular umbrella companies. However, the suspicion is that they get commission from doing this. This is illegal under the 2010 Bribery Act – but they still do it.
Working through those offshore umbrella companies is the most lucrative for contractors. Using umbrella companies like that will have returns of up to 90%.
Umbrella Company List
To find some of these offshore umbrella companies, and more umbrella company reviews, you should click on Offshore Umbrella Company List
Contractors who want to find moneymaking opportunities should click on Contractor Moneymaking