How does it work?

How Does UCA’s Tax Solution Actually Work?
Umbrella Company Alternative’s innovative salary payment structure for contractors is so unique and so financially rewarding because it is both simple and effective. Boasting rock-solid HMRC compliance our tax solution simply involves contractors becoming ‘skilled employees’ under the Umbrella Company Alternative tax structure, with standard UK employment contracts and covered by UK employment law and employment benefits.
Transparent Salary Payments.
All remuneration payments and benefits paid to you via the UCA tax structure are treated as employment income under Chapter 2, Part 2 and Chapter 7, Part 3 of the ITEPA 2003 and all payments have the required UK PAYE, Income Tax and National Insurance deducted.
In a nutshell, contractors are classed as ‘skilled employees’ and paid accordingly with full compliance of HMRC rules. Full disclosure is made of all income received in your personal tax return – nothing is hidden. As a skilled employee working as part of the structure you are neither a shareholder nor director of any company, and will receive no dividends or share options.
IR35 and Managed Service Company Compliant.
Equally therefore, under the UCA tax structure, IR35 legislation no longer applies. UCA have always sought strict compliance with all UK tax and employment legislation and have recently had this compliance confirmed by a new Queen’s Counsel opinion, evolved from 3 previous similar opinions. As such we can confirm that we are not covered by legislation affecting IR35 or Managed Service Companies.
Take Home More Pay Every Month!
Whether you work on your own or through a recruitment agency, Umbrella Company Alternative can guarantee you both more money and less paperwork! Instead of wasting time on expenses and Limited Company forms you simply send one timesheet to your own dedicated manager at UCA who will then handle everything on your behalf. It really is as easy and as hassle free as that!
With no joining or leaving fees you only pay while you are with us. This could be a month, a year or ten years. It’s up to you. And of course the best bit is that you’ll be taking home more pay every month as you see much higher gross to net earnings ratios!