Tier 1 Extension: Umbrella Company Implications

[dfurletti]

Hi All,

I am about to delve into the contacting space and have a visa renewal coming up in June 2012.

I have been doing a lot of research on Ltd Company vs Umbrella etc but my real questions come down to umbrella companies and the renewal of my visa.

I would be very grateful if you could share you experiences on the following:

1) Extending your tier 1 while using an umbrella company. i.e. what company did you go though? did you have any issues with HMRC?

2) Has anyone had experiences of extending visas while using an "off shore" umbrella (often considered dodgy?!) was your visa approved/denied?

3) ANy horror stories/happy endings going though an umbrella and renewing your visa?

4) Any general advice for someone looking for an umbrella company with an impending visa renewal.

Any feedback would be greatly appreciated!!

thanks

DF

[tier1_aspirant123]

before you get answered all your questions... did you find out if umbrella companies are accepting any new contracts after jan 2011? I approached one they said no to me hence i decided to setup my own company...

[mady123]

@tier1_aspirant123
Couple of weeks before I opened an account with Umbrella company, so no issues.

Even I have same concerns and It will be very helpful if some one clarifies.

Thanks in advance

Mady

[PaperPusher]

Read the Tier 1 guidance about reimbursements and allowances.

Umberalla companies can be a very bad thing for a Tier 1 person trying to get an extension.

[ukuku]

I succussfully used umbrella company to get my first T1(G) visa in 2009. It is a UK based company and issue my formal hard copy payslips and employer letter for visa.

If UKBA issued my visa in the first place when I used my umbrella company, I can't see anything wrong with them extending it. They point is that: I obey all the rules, pay my NI and taxes, do not claim anything that I should not claim. I don't use any 'off shore' umbrella company etc.

I stayed with umbrella company despite that my income is less than the amount i would get if using my limit company. I think bad ltd company is just as risky as dogy umbrella companies. To me, get 10% more everymonth using a ltd means that I have to provide more documents when apply/extend.

[aliq09]

Hi All,

I am about to delve into the contacting space and have a visa renewal coming up in June 2012.

I have been doing a lot of research on Ltd Company vs Umbrella etc but my real questions come down to umbrella companies and the renewal of my visa.

I would be very grateful if you could share you experiences on the following:

1) Extending your tier 1 while using an umbrella company. i.e. what company did you go though? did you have any issues with HMRC?

2) Has anyone had experiences of extending visas while using an "off shore" umbrella (often considered dodgy?!) was your visa approved/denied?

3) ANy horror stories/happy endings going though an umbrella and renewing your visa?

4) Any general advice for someone looking for an umbrella company with an impending visa renewal.

Any feedback would be greatly appreciated!!

thanks

DF

Hi ,

In my opinion , open your own compnay ltd ... ok! let me put one example here ... it's a case with umbrella compnay

Suppose you get 100 pounds from your work and the agency / company send your amount to umbrella company now see what happen with your 100 pounds

1) there service charges : 20 ( i think may go high)

2) Any holiday pay : ( may be 15 .. but some umbrella don't put it)

3) Minus the expense you claim ( suppose 40 poubds)

4) Amount left after all this will be used for NI ( both sides) and Tax

5) Now they will add the expense in the remaining amount and credit it to your account

Now , my friend , once you go for re newal , home office will see your income on which you paid tax . so in that case it will be around 30 or less pounds ... but you will say hay! i was earning 100 pounds .. hmm! no body will see that amount ..

So go for ltd but you must have a good accoutnat as you are taking allot for responsibility . Pay your NI , PAYE and TAX ...

Thanks
Ali

[Sushil-ACCA]

for ti umbreall company is risky unless taxable salary in pay slips r s meeting ho threshold