As Maritime Payroll Specialists we can provide efficient contractor services supported with specific tax knowledge of maritime industries.
If you join our contractor umbrella company service at Binks Overseas, you will become an ’employee’ of our company. Your client or agency pays us when you have submitted a weekly or monthly timesheet to us and we have sent them an invoice to pay. You will receive a salary after deductions for tax, National Insurance, expenses, the umbrella fee, and any other pre-agreed costs. In some cases income tax and National Insurance deductions may not be applicable, especially for those not resident in the UK or with special tax codes issues by HMRC.
The contractor umbrella company service is not always as tax efficient as the limited company route, however it does represent a ‘hassle free’ way to contract, which may appeal to you who are testing the water, are a short-term contractor, and those who do not want to take on any form of administration. We would be happy to discuss your individual situation to ensure you utilise the most tax-efficient option.
Comparison Table / Calculator
- View our umbrella/limited comparison table for a concise view of the pros and cons of using each business structure.
- To compare the tax liability you will owe as a limited or umbrella contractor, please ask us for an example.
If your contract work is subject to a notorious piece of tax legislation – IR35 – then the benefits of contracting via your own company are vastly reduced, and an umbrella company may be the preferred option as a result.
IR35 was introduced in 2000 after the Government sought to clamp down on the practice of ‘disguised employment’, whereby a worker might leave a traditional job on the Friday, only to return as a limited company contractor the following week; enjoying the tax benefits of the incorporated structure, but working in an identical way to that of an ’employee’.
You can find out more about IR35, and the financial consequences of being caught, here.
Limited company or umbrella service – comparison table for maritime contractors
Almost all contractors who provide professional services to clients trade through their own limited companies, or join umbrella schemes. Here we’ve compiled a table to help compare the pros and cons of each structure (click here)