There appears to be much confusion in the UK in regards to the difference between contractor umbrella companies and PAYE agencies. Although it might be a bit vague at first, the real difference is that a contractor umbrella company can offer some very real tax advantages which wouldn’t be available as an employee of a PAYE recruitment agency.
To put it in simple terms, being a contractor under an umbrella company allows one to operate as a limited company in order to take advantages of tax breaks such as being able to claim travel and subsistence expenses on tax returns. Employees of PAYE recruitment agencies, on the other hand, are not allowed those deductions and pay higher taxes as a result.
Also, new legislation in regards to Agency Workers Relations needs to be given careful consideration. Pulse Umbrella is a company founded and run by contractors who pay special heed to the needs of workers’ rights. Following strict compliance with AWR guidance which came into effect October 1, 1011, Pulse makes certain that each and every one of their contractors is protected under these laws.
Bear in mind that AWR guidance is in effect for any workers in the UK whether they are employed through a recruitment agency, directly by an employer or through an umbrella company such as pulseumbrella.com. You have the right to be protected under UK employment laws and Pulse Umbrella sees to it that you are afforded this protection.
There are other umbrella companies in the UK but there is only one Pulse Umbrella and the name should suggest that it is their goal to keep in touch with the mainstream ‘pulse’ of current workers’ rights and benefits. More than just an umbrella company, Pulse is an organisation of contractors just like you.
Rather than succumb to big business at its worst, let Pulse keep you in touch with your rights whilst allowing you to take advantage of the largest tax breaks open to you. Work for yourself as a limited company but let Pulse handle the worries of payroll and taxes. It’s a win – win proposition.