Umbrella Company

An umbrella company is a vehicle that enables contractors to invoice their client or agency for work done, collect payments and calculate tax and National Insurance payments due.

Benefits of Umbrella Company Services

An umbrella company is the most straightforward and safest option for a contractor or agency worker when compared to limited companies, managed companies and composite companies. These other types of companies are more complicated and involve 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 landing on the contractor 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 umbrella company service enables contractors to easily and legitimately take home more of the money they earn. With BBuffalo contractors are able to claim genuine business expenses, such as travel costs, which help to reduce tax and NI payments. Contractors do not have to worry about end of year or future tax bills when using BBuffalo, because unlike other 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 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.