Before your Application Form is processed you will need to decide which type of accountancy service you would like us to administer for you.
For most of our contractors, the
Redego Umbrella will provide a simple, straightforward and tax-efficient vehicle that allows you to invoice the agency / end client gross through a Limited Company, reclaim business expenses (where applicable) and therefore take home up to 10% more money than being a PAYE employee. You will also benefit from free
Professional Indemnity Insurance, access to a Stakeholder Pension Scheme and tax efficient
Child Care Vouchers. The
Redego Umbrella has been approved by HMRC and is not affected by IR35 or the new MSC Legislation. It is therefore our recommended and most popular payroll solution.
The
Redego PSC is designed for long term professional contractors that want to operate in business on their own account, take on the financial responsibility and organisational control of running a small company and therefore benefit from a higher take home salary. You will act as the Director of your Limited Company, be in charge of the company bank account and all the decision making that goes with ownership.
You will have the option of expensing certain costs through your Limited Company and also receive tax efficient dividends, which will help you retain more of the taxable earnings. In many ways, we will act as an outsourced service for company administration and accounting as well as providing specialist advice on IR35 and employment status. Under
Redego PSC, the contractor maintains
full control of his or her Limited Company with very much an ‘arm’s length’ relationship with Redego Accountants. You will therefore be held personally accountable for the activities of your Limited Company.
At Redego, we advise that contractors start off using the Redego Umbrella service (regardless of their daily or hourly rate) and only move to Redego PSC if they are familiar and comfortable with the responsibilities of running their own business and (for example) want to invest in their own website, business cards and serviced office accommodation. If your plan is to grow a business then the Redego PSC may be the best option from the outset although we would strongly advise you to consider the implications of IR35 as well as the MSC Legislation (post April 2007) and how these may affect you.
