Umbrella company, Parasol, has announced a collaboration with their specialist sister accountancy provider, ClearSky Contractor Accounting, to bring a sought-after dual contracting solution to the marketplace.
Both businesses are part of Optionis, a collective of market leading accountancy, tax and umbrella brands, and this new offering is part of wider growth plans for the company and has been set up ahead of the imminent off-payroll reforms, which come into play in April 2021.
The new set-up – an extension to both Parasol and ClearSky’s current offerings – will enable contractors and freelancers to work through both umbrella and limited company set-ups, with an easy and seamless transition between the two businesses arranged in line with individual contractor’s specific needs.
A survey conducted in 2020 by Parasol found that more than 68 per cent of contractors were either ‘concerned’ or ‘very concerned’ about the possible impact of the off-payroll reforms, while 42 per cent believed they would need to utilise an umbrella company to continue working independently.
Another study also found that 30 per cent of contractors already operate with a mixed-set up; a statistic expected to increase once the off-payroll reforms are introduced.
Amy Davies, director of sales at Parasol, said: “From our research into how the imminent off-payroll reforms will affect the contracting market, we believe there is a need and a desire for a fully-integrated solution that allows for both ways of working, as this will likely become the norm for many contractors post-April.
“Our new dual solution enables Parasol’s contractors to work on contracts using our umbrella set-up, while also being able to take up work that falls outside of IR35 between these contracts and work through a limited company. The transition from umbrella to accountancy will be seamless, making it an ideal option for those wanting to keep the process as simple as possible.
“At present, there are many administerial burdens for contractors who work through umbrella firms and their own limited companies, with some having to go as far as closing down their limited company, depending on contract specifics. Parasol and ClearSky’s collaboration avoids all of this, with contractors signed up to the new scheme being able to flip between both companies effortlessly.”
When discussing the new offering, Michael Dalton at ClearSky Contractor Accounting said: “We’re thrilled to be working with our expert colleagues at Parasol to bring this much-needed new offering to the market. This margin-free umbrella employment solution will offer a quick and simple way for contractors to take up work both inside and outside of IR35, while still complying with the new legislation and working in the most tax-efficient way when possible.
“We’re aware that many of our contractors may need to engage with umbrella firms to ensure they comply with the reforms from April onwards, so it’s fantastic that we’ve been able to create a solution that makes this easy for them. We’re confident that many of our current contractors, as well as future clients, will benefit hugely from us having implemented this new package.”