Trading Options
If you are a freelance worker, you can choose between agency
PAYE, joining an umbrella service, or being a director and
shareholder of your own limited company, often referred to as a
personal service company or PSC.
Project Resource does not supply PAYE employees to employers; we
work with freelancers/contractors that work through an umbrella
service or their own Limited company.
Agency PAYE
The basic option, agency PAYE, is the least profitable for you
because you receive a salary but no expense allowances.
Umbrella Service
An umbrella company allows you to claim bona fide expenses,
which means more pay in your pocket. You have no administration, no
commitment, no hassle and no limited company statutory or
legislative worries and responsibilities.
Own Limited Company
The term 'limited' derives from the fact that the company's
finances are distinct from the personal finances of their owners
(unlike the sole trader arrangement). Shareholders in limited
liability companies are not responsible for company debts, although
if required, directors may be required to guarantee loans or credit
granted to the company. There are administrative responsibilities
such as registering at Companies House.
Project Resource suggests that you should seek financial advice
before deciding which option is best suited to you. You may want to
look at our Umbrella Companies page, which will
have links to companies we have worked with, and who can help in
this arena.