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An expert survey conducted by Kingston University states that number of freelancers and contractors in the United Kingdom has risen since the year 1998. Research and studies have also proved that there are some millions of freelancers and contractors in Britain alone and this number is increasing with passage of time. One consideration which these contractors or freelancers have is the choice to avail of the umbrella company services, or to opt for alternative solutions for trading, such as being sole traders or forming some limited company. Let us now focus on some of the important and useful tips for helping these contractors for making the correct decision in this regards. There are two major methods in the consideration regarding the payment schemes of umbrella company services. One method is the deduction of some fixed percentage from all the invoices submitted by contractors. This way may prove to cost on the higher side; especially for the contractors who regularly submit invoices and earn little. The usual percentage in this regards is around 5 percent on the total invoice amount. This means that the contractors have to make calculations for viewing if this particular method is suitable financially or whether they should look for something else. There are some umbrella company services that set caps while they operate on percentage for invoice basis on total amounts which are deductible. This usually has a range between 30 and 50 pounds per week. The second method adopted by umbrella company services consists charging some fixed monthly or weekly amount for the services they provide. According to one recent chart for comparison though there is not much difference among these fees charged by various companies per week, the fees vary substantially when we consider the payment on monthly basis. This charge is usually between 26 to 30 pounds per week for different companies and varies around 63 percent on a monthly basis. However, the contractors need to be aware of umbrella company services that make false claims and advertise saying that they aid contractors in earning more or obtain more income as take home. You need to remember that such claims are completely unsubstantiated; importantly these claims are false. All umbrella company services working in United Kingdom are regulated by Inland Revenue. The customs department and revenue department determine the amount that can be deducted from the given salary and also how much amount any contractor can take home as salary. Hence, there is no umbrella company which can aid in earning more or paying less to the contractors or freelancers. Before opting for any Umbrella Company services, the contractors need to know that there might be a possibility of such companies going bankrupt. Hence, you need to do some research for finding if the particular company is audited regularly by third parties. The company needs to work with authorized accountants. You can check testimonials from past clients for understanding the service levels of the company. If you remember all the suggestions mentioned herewith, you can be assured of success in your ventures.
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