Resources
Knowledge hub
Explore the Most Recent Updates from Parasol: Tax Revisions, IR35 Insights, Partner Benefits, and Valuable Tips and Tricks for Umbrella Working.
Our knowledge hub is here to assist and keep you well informed.
Starting out
Permanent or contracting?
Contracting is a form of self-employment. Typically, contractors operate via their own limited company or through an umbrella company, providing their services to clients on a freelance and temporary basis.
What is umbrella payroll?
When operating via an umbrella company, the IR35 legislation isn’t a consideration because you become an employee of the umbrella. IR35 only applies to individuals working via their own limited company.
How to find contract work
Being able to find work as a contractor determines whether you’re able to make a living as an independent professional or not. But how hard is it to find a contract? What can you do to advertise your services?
What is the Starter Checklist?
When you start working through an umbrella company, you might be asked to fill in a Starter Checklist form. This calculates your tax, but it’s a bit more complex than that alone.
Compliance and legislation
What is AWR?
The Agency Workers Regulations were introduced as part of a package of legislative changes which came into effect in April 2020, called the Agency Workers (Amendment) Regulations 2019.
Understanding Supervision, Direction and Control (SDC)
From 6th April 2016, the type of expenses that are paid by umbrella companies to their employees is determined by the employee’s supervision, direction or control (SDC) status.
What are the Conduct Regulations?
The Conduct of Employment Agencies and Employment Businesses 2003 (“Conduct Regulations”) are regulations which govern the recruitment industry in the UK.
Financial planning
Umbrella company pensions
Like it or not, everyone feels unwell at some stage in their lives, and sometimes to the extent that they can’t work. And taking time off work due to sickness is something that COVID-19 brought into sharp focus for millions of people working for themselves in the UK.
Contractor insurance explained
Whilst there are many factors that must be considered when making an IR35 status determination, having a substitution clause in the contract is often seen as the ‘silver bullet’. In fact, HMRC’s own Check Employment Status for Tax (CEST) tool is heavily weighted towards substitution.
Stay up-to-date with the latest budget
Keep up to date with all of the latest budget information.
Help with IR35
What is IR35?
Whether you’re new to contracting or you’ve been self-employed for some time, IR35 can be difficult to understand. As a complex piece of legislation, its nuances can often cause a great deal of confusion.
What is a disguised employee?
A disguised employee, simply defined, is a worker who carries out their work in the way an employee would, whilst operating through an intermediary, for example a limited company.
Inside IR35 implications explained
IR35 legislation is notoriously complex and many factors should be considered when determining if a contract belongs inside or outside these tax rules.
What is Mutuality of Obligation (MOO)?
Mutuality of Obligation (MoO) is perhaps one of the most controversial topics related to IR35 legislation.
Calculate your Calculations are examples based on a series of assumptions
ASSUMPTIONS
GENERAL:
Based on rates and thresholds for 2024/25.
Assumes 12 months worked post 6th April 2024
No income from other sources in the tax year
Working 40 hours per week over 52 weeks
28 days holiday per year
1257L tax code
UMBRELLA
You are not subject to SDC
Includes Parasol umbrella solution margin - £10 average
Holiday pay is paid in advance of taking any annual leave
Pension is not taken into account
No expenses can be claimed.
LIMITED
Assignments are not subject to IR35
Includes flat rate VAT benefit for the first year at 15.5%.
Director's fee of £229 per week
Includes Caroola Accountancy fee of £135 per month
Claiming £265 expenses per week
Claiming 200 business miles per week
