Freelancers should ensure they do their research on any PAYE umbrella company they consider joining, it has been claimed.
According to industry resource website Contractor Calculator, the best service providers can offer a fast contracting solution for self-employed professionals, including those who are ‘testing the waters’.
“If an umbrella company is the right trading solution for you, make sure you check up on the firm’s background,” the website stated.
It urged freelancers to investigate the umbrella company’s credit rating and how long it has been trading.
“Ask if it would move your money offshore at any stage; if so, it might not be a true PAYE umbrella company and could actually be providing an offshore tax solution,” Contract Calculator stated.
Parasol is one of the UK’s best established PAYE umbrella companies, having served more than 35,000 contractors since being set up in 2000.