In the United Kingdom and other European countries, Umbrella Companies are having great successes, due to the approach these businesses have on how to hire freelancers and independent professionals, giving them great work offers and plenty of other benefits that make them join these corporations and act directly as their contractors, hired personnel or employees.
Among the plenty of benefits Umbrella corporations provide to workers and professionals in general, there is the main advantage of managing their different administrative matters and responsibilities, allowing them to focus on work and just work, leaving managerial functions to the company that might actually be very demanding and confusing.
For these services, the Umbrella Companies charge every worker with a fixed fee or percentage on the work they perform, usually not surpassing ten percent of the actual net income. However, it is important to clarify that although the company is able to manage all of this information and procedures on behalf of the professionals, the responsibility of the individuals is still there and they must therefore be aware of their part in their administrative rights and duties.
To guarantee that this actually happens, many Umbrella Companies and usually the biggest ones in the UK and other countries are linked directly to the HMRC organisation and its statutes, so every right and duty regarding the corporation and its workers are fulfilled with respect to administrative procedures, taxes and other important aspects of income from the company and contractors.
Details and purpose of HMRC Umbrella Companies
Specifically, an HMRC Umbrella Company is this type of corporation that actually meets with every mandatory law requirement in the United Kingdom and other countries, although in this case such legislations may change and HMRC is actually only available in the UK.
HMRC is the acronym for Her Majesty´s Revenue and Customs and is the regulatory organization in the UK for taxes, wages and more. So, in order for a Umbrella Company to work properly and inside of the law, all statutes existing and mandatory from this organization must be met, respecting the administrative procedures Umbrella businesses carry out on behalf of their hired professionals and contractors.
For example, tax deduction must meet with some criteria in terms of percentage of income, time period and other matters that in the case of not being met, such process will be illegal and may bring serious problems for the company and of course for the independent contractor.
HMRC Umbrella Companies differ from other corporations of the same type and approach, due to the fact that legislations and laws from this act are followed to the letter, in order to avoid committing financial felony and more at the moment of managing the workers´ taxes and other aspects, such as payroll, deductions, fees and IR35 Compliant.
It is important to know that absolutely everyone can be investigated by the HMRC in the UK, so workers should be aware of their civil responsibility to know their income and meet the law, individually and also when they perform works related to Umbrella Companies.