October 30, 2012 at 21:50 PM EDT
UC Finance reveals £1bn cost to contractors & freelancers of umbrella companies
News Source: WiredPRNews.com
10/30/2012 (press release: DPRi) // Helen Reid

UC Finance has launched a campaign to save the UK’s contractors and freelancers more than £1billion a year in unnecessary charges and taxation.



Research conducted by the Timesheet Finance company suggests that of the estimated 200,000 contractors currently working through an Umbrella Company, 50% could be losing up to 11% of their annual earnings by doing so. The firm calculates that a freelancer earning £350 a day could save £10,000 - including all costs - by setting themselves up as a one man limited company.



“Freelancers and contractors across the UK are losing significant sums of money because they’ve been sold or ushered into taking an option that simply isn’t the best solution for them. Some will have been encouraged into following the Umbrella Company route by their recruitment agency and others might have been scared into it by the threat of falling foul of IR35 or delayed invoice payments, but either way up to 100,000 people today are locked into a situation where they’re paying seriously over the odds,” said Alasdair McGill, CEO at UC Finance.



“That’s compounded by the problem that even once they’re aware of the issue, many contractors feel trapped because of the fear of moving away from regular weekly payment, the challenges involved in sorting out an affordable finance solution, reworking contracts and completing the necessary registrations seem too great.”



In order to create a hassle free escape route for freelancers currently working through Umbrella Companies, UC Finance has partnered with online accountants Crunch, who have already helped many of their 3000+ clients make the switch from umbrella company status, business contracts and assurance specialist Qdos and contractor accountancy firm FW Accounting to create a cost effective one-stop solution.



After using the campaign’s free online calculator to check whether leaving the Umbrella Company setup would save a significant sum, contractors have the option of contacting UC Finance directly by telephone, email or live chat to discuss the process of switching to a limited company format.



The campaign’s accountancy partners will provide free business incorporation as part of the solution, with Qdos supplying the necessary business insurances and UC Finance stepping in to provide the financial support required to keep the participant’s income stream flowing steadily throughout the process.



UC Finance Managing Director Joanna Holloway commented: “If their contract is IR35 compliant, any freelancer working for more than £150 a day could find that switching to limited company status may well offer considerable financial benefits. We’re delighted to have teamed up with some of the best companies in the business to create a solution that renders making the move to independent status completely painless and hassle-free.



“It might be that working through an Umbrella Company is the right option for you, but if it’s not staying put could turn out to be a very expensive mistake.”



For more information, please visit: http://www.ucfinance.co.uk/is-an-umbrella-right-for-you/



About UC Finance



UC Finance was founded to bring a refreshingly ethical, straightforward and transparent approach to the financial sector. Emerging with a bright new ethos from the wreckage of the traditional banking industry, the company provides freelancers and contractors with the essential low cost borrowing facilities frequently denied them by High Street banks.



Combining a 21st Century approach to the Finance sector with old world values, the company treats self-employed customers with the respect they deserve, offering accessible finance packages to a range of one-person limited companies.



All costs, which are fully tax deductible, are agreed up front with no hidden charges. Clients pay less than 4% of their invoice value, on average, for the full service : - cash advanced, invoices raised, and collections undertaken.



Social Media Tags:contractor, freelancer, IR35, umbrella company, timesheet finance, one man limited companies, UK, asset finance

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