Moreover, with company legislation changing at the rate it does, you need to be sure you are fully aware of how the changes affect you and your fellow directors. We can give you complete peace of mind in this area by carrying out your company secretarial duties for you.
Our services include:
● Company formations
● Preparation and filing of statutory returns
● Preparation of all documentation related to minutes and resolutions
● Maintenance of statutory books
● Preparation of dividend vouchers
By law, every company must have a registered office. The company secretary - if you have one - is usually responsible for establishing and maintaining it - it's the company's address for formal communications The registered office must be a real address, but it doesn't have to be the place where you do business. PO Box numbers alone are not acceptable.
All our registered office addresses are based in London. The monthly fee starts from £5/month.
Payroll and Book-keeping training
Skills covered by the training generally include:
●Processing sales invoices, receipts and payments
● Preparing statements showing income and expenditure
● Completing VAT returns
● Payroll calculations
● Preparing final accounts, such as profit and loss accounts and balance sheets
● Using SAGE and other computerised accounting systems
AWM STRATEGIC PAY
There are many ways in which we differ from your current umbrella but most importantly, our starting point is to ensure that all of your payroll needs are met and that you are paid correctly and on timely manner every time. But of course we don’t stop there.We’ll help you manage all aspects of your payroll from your timesheets to your end client requirements all whilst enabling you to access 85% of your funds.
An umbrella company processes timesheets received from the employee/contractor, then issues an invoice to the client for payment.
Flowchart of Umbrella Employment
An umbrella company is an employer and therefore all contractors working with them should sign a Contract of Employment, also referred to as a contract of service. This contractual arrangement establishes the rights and obligations in such matters as maternity pay, sick pay and employment protection. Contract and Employment law is complicated and there is a substantial body of case law which provides guidance on what constitutes a contract of service.
The umbrella company provides payroll on behalf of the contractor and bills the agency (who in turn bills the client) for work completed by the contractor. The umbrella company provides all social contribution and tax payments (in some countries also "PAYE, Pay As You Earn") and equivalents and National Insurance returns on behalf of the contractor.
The client is effectively the company for whom the contractor works. This may be within any industry and across all levels of employment. The client often elects to use contractors as it affords them the ability to temporarily augment their staff or capability without the burden of the legal requirements associated with permanent employees (PAYE, NI, sick pay, insurances etc.). Using contractors also facilitates special skills and typically provides the advantage of a broader skill set as the contractor has typically worked many companies and organizations during prior contracts.
The agency, if involved, performs the recruitment process on behalf of the client. Some agencies will provide a PAYE scheme as part of their offer. This alleviates the requirement for the umbrella company but requires additional capability within the organization including professional accountants and adherence to fiscal laws. Most agencies elect to utilize an umbrella company.
The contractor or employee of the umbrella company completes the actual work, completes a timesheet and submits this (typically via fax or secure web portal) along with any expense claims to the umbrella company.
Expenses and taxes
All umbrella companies use the same PAYE calculations to ascertain how much tax should be paid. The only difference between umbrella companies will be the margin that they charge and the benefit schemes they run. Some of the most common "allowable" expenses include: mileage & general travel expenses, hotel and accommodation expenses and professional subscriptions. Food and subsistence is rarely allowed to be claimed, as it is HMRC's opinion that you would eat regardless as to whether you are working or not. The exception to this rule is if you were staying away from home as part of the work. As an employee of an Umbrella Company you may be entitled to claim assignment related contractor expenses. if you engage in a number of assignments, based at different workplaces, during a single period of employment. If you know you will only work on a single assignment during your employment your workplace automatically meets HMRC’s definition of a permanent workplace and therefore travel and accommodation expense claims are not permitted.
What is IR35?
IR35’ is legislation that HM Revenue and Customs (HMRC) uses to establish whether a contractor is truly self-employed, or claiming self-employment status, and therefore, avoiding tax.HMRC considers that self-employed person should be able to prove the following:
Choose When, How and Where They Work
When is a self-employment not self-employment?
Someone who has fixed hours, requires authorisation for annual leave and can’t be replaced by an alternative.
In other words, much more like an employee – this is known as a “Disguised Employee”.
Should the tax authorities investigate and rule that a contractor is really a “Disguised Employee”, it is very likely that HMRC will demand all the ‘unpaid’ back tax and potentially levy a penalty of up to 100% of your tax bill.
Contractors and accountants agree that IR35 needs to be reformed, whilst successive governments have discussed simplifying IR35 legislation, none has yet delivered it.
After many months of consultation with stakeholders new rules will apply from April 2017, Prosperity Pay is here to guide you through the IR35 rules and help you obtain a contract that is IR35 proof.
Are there any fees when I’m not working?
No, you are not charged when you are not working
All you need to do is send us your timesheet, sit back and we take care of the rest.We will invoice your agency, send you your payslip and arrange for swift payment to be made to your bank account.
For Your Information
There are some weird, risky payment solutions being offered by some companies, promising over 90% take home pay. HMRC does not like them and the net is closing in.We keep our solution to the established umbrella company model, complying fully with HMRC rules and IR35 legislation.
Every member of the AWM Strategic PAY Umbrella team has Tax knowledge our front line Customer Service advisors are always there to help and in the back we have our Accountancy expertise, so you can rest assured that you are in safe hands.
AWM Strategic PAY involves considerably less paperwork and general admin than either running your own Limited Company or working through many alternative Umbrella Companies.
Why Choose AWM STRATEGIC PAY?
Here at AWM Strategic PAY we keep your contracting life simple and hassle-free so you can spend your time and efforts elsewhere.
Benefits of umbrella
The type of work you expect to be carrying out can also influence your decision. If you expect that most or all of your contracts will be caught by IR35, then there is very little financial justification to go the limited company route as you will still have to pay full PAYE and NI contributions. An umbrella company in this case would definitely be a viable option.
Not least, remember that the decision to operate using an umbrella company is not binding. At any point you could review your business model and opt to switch to a limited company – something not so easy to do in the other direction.
The principal advantage of the umbrella company model is that it gives an alternative route into contracting for those who, for one reason or another, do not wish to or are not in a position to immediately take the plunge of setting up their own limited company. Ensure that you know the full facts about the business models available, and that you are clear in your mind as to what you want to get out of the contracting experience, and you will put yourself in the best possible position to enjoy a rewarding independent career.