Umbrella Company

An umbrella company provides contractors who work under a temporary contract with the following services: invoicing the client or agency for work done, collecting payments and calculating tax and National Insurance payments due, providing employment insurances and facilitating tax-relief on allowable expenses.

Benefits of Umbrella Company Services

An umbrella company is typically the most straightforward and safest option for a contractor to operate under, avoiding the administration burden associated with running a limited company. Being on an agency's or client's payroll is likely to be less tax-efficient, and operating through a limited company is usually more complicated and involves paying the contractor partly in dividends.

Receiving payments in dividends can appear to be beneficial to the contractor, reducing the amount of tax the contractor pays. However, not all contractors are entitled to pay themselves in dividends and this could lead to a large future tax bill and a challenge by HMRC against IR35 tax legislation for unpaid tax and National Insurance. Using an umbrella company removes many of the hassles associated with running a limited company.

The term umbrella company is often used misleadingly as a general term to cover all types of services to contractors, but a genuine umbrella company will not pay a contractor using dividends.

Why BBuffalo?

BBuffalo's online umbrella company service enables contractors to easily and legitimately take home more of the money they earn.

With BBuffalo, contractors are able to claim tax-relief on genuine business expenses. Contractors do not have to worry about end of year or future tax bills when using BBuffalo, because unlike some solutions, with BBuffalo, a contractor's tax and NI is always paid up to date.

BBuffalo's umbrella company is easy to use, the contractor can input all their hours and expenses online via their own secure BBuffalo account. BBuffalo charges an unbeatable £9.50/week for a complete online PAYE umbrella company service. BBuffalo is a fixed fee, pay-as-you-use service with no set-up fees, exit fees or hidden charges. All BBuffalo contractors are fully insured with Professional Indemnity Insurance and Employer's and Public Liability Insurance. BBuffalo runs a payroll everyday; this means that contractors are not left waiting for the next payroll date to receive their money.