What is an umbrella company?

In simple word Umbrella Company can defined as,  service company that enables contractors to receive payments, without the need of setting up and running their own Limited Company and their role is to ensure that you are paid on time with as little hassle as possible, without all the responsibilities and cost of managing their own limited company

Umbrella companies allow contractors to benefit from being legally tax-efficient, without having to worry about the IR35. Many of the tax efficiencies that an umbrella company provides come from the genuine business expenses allowances that can be paid off against tax which are directly negotiated with and agreed by HM Revenue and Customs.

Umbrella companies employ the contractor directly as a “flexible employee” – they calculate and deduct tax and National Insurance Contributions at source. This means the contractor works correctly and according to the rules laid down by HM Revenue and Customs for employed workers.

Himalaya enterprise is working in conjunction with the HMRC, provides a genuine umbrella services and allow all its employees to genuinely offset business expenses, against tax.

The main benefits of working with an umbrella company are:

• Expert management of all your client billing, payroll management, expenses claims and tax deductions.
• We assure the regular weekly or monthly payment of your wages and benefits. taken care by us and you get paid on time
• Complete peace of mind of knowing that all legal, contractual and tax obligations are being met.
• A tried and tested solution, used previously by tens of thousands of contractors, accepted by agencies and end clients, providing a comprehensive end to end process, making contracting easier  
• On top of everything lots of additional service benefits and affiliate offers, purposely customized to contractors and freelancers.

Q: what it takes to run own limited company then Umbrella Company.

Running and administering a limited company could be the right choice if you have complex financial dealings, several income streams or because of comprehensive advice from an accountant. Incorporating and running your own company may also lead to higher net returns subsequent to the deduction of taxes. nevertheless it includes responsibilities that mean you’re not always free to get on with the work you are good at and enjoy… it generally means the following:    

• You are a director of you limited company and need to keep companies house informed of your tax and legal status.
• You must produce detailed tax and accounts, record
• You will need to pay for the services of a reliable accountant
• You will be required to respond to communications from accountants/HMRC/Companies House etc...  
• You will be responsible for submitting and paying accurate corporation tax returns
• You must ensure that you conductIR35 reviews to ensure you are on the correct side of tax law
• You will be required to complete an annual self assessment form to declare any dividends received to the HMRC
• You must ensure that all documents/returns are filed in good time to avoid late filing penalties

What Administration is Included in the Payroll Service?

We provide a fully compliant and comprehensive payroll service that includes:

Managing and maintaining you timesheets.

Raising invoices to your agency

 Processing your expense claims by post, e-mail, fax or via Portal.
Calculating salary and commission.

Calculating you tax and National insurance
Distributing funds direct by CHAPS BACS or CHEQUES direct in to your bank account.
Providing a fully detailed payslip and end of year documentation.

Is There a Set Up Cost or Any Other Charges?

There is absolutely no set up cost or minimum fee for setting up your account with himalaya and minimal fees are only incurred when you raise timesheets,

Do I have to pay any fees and charges if I am not working?

You do not have to pay anything if you are not working. You would be paying, only when you are getting paid.

How often I get paid:

We run the Payroll on Daily Basis, so as soon as we receive the payment, you would get paid. You can receive your pay through direct credit in to your account, via BACS or CHAPS method, or by Cheque.

Who do I submit my Timesheets and Expenses?

You have to send your time sheet to your agency and a copy of it to Himalaya as well. All the allowable expenses receipts should be submitted to Himalaya Enterprise in order to reimbursement of your expenses.

How do I claim Expenses?

You can claim all your expenses incurred in order to perfume your job. All the allowable expenses would be claimed under the HMRC subsistence

How do I know what and when I’ve been paid?

We create and send you a Payslip (by post or email). You can find all the detail of your pay with the tax and national insurance detail.

What do I need to do to get paid?

You require to submit your timesheet and expense claim on the weekly or monthly due date.

As soon as we receive it we issue an invoice for amounts owed to the end client and we ensure invoices are paid on owing dates.

As part of our service we will also keep you inform if we believe you have forgotten to submit a timesheet.

To avoid paying emergency tax you will need to send in your P45 from your previous employment or Umbrella Company. In case if you do not have that then we will send you out a P46.

When do I get paid?

We perform Daily BACS payments. So as soon as we get your payment we forward it onto your Bank Account. We use different payment methods such as BACS, CHAPS, CHEQUE, according to individual’s requirements