Q: Could you tell me who you are and what Cool Company is all about?
Of course, my name is Kris Simpson and I’m the Head of B2C for Cool Company UK. Cool Company is a digital umbrella company, who support contractors in the UK with managing the invoice and PAYE payroll process for the assignment they undertake.
Q: What is a PAYE umbrella company and how does it work?
A PAYE umbrella is a company that support contractors who undertake assignments for clients of recruitment agencies. We act as an employment intermediary and help the contractor pay the correct amount of taxes on their income while managing the client invoicing process and providing access to employment rights. We ensure compliance across the whole supply chain and remove any tax risks both for the contractor and the clients they are performing the assignment for.
Q: What are the benefits of working with Cool Company and what services do you provide?
There are many benefits of working via an umbrella such as employment protection, minimised administration, taxes taken care of etc. One thing that makes Cool Company different is our service is 100% digital. We deliver our solution via a purpose build platform that allows the contractors to use our service efficiently and saves them time.
Q: Why should people join an umbrella company?
Umbrella companies take all the admin and risk out of working as a contractor. Besides the employment benefits and simple process, using an umbrella means that the contractor doesn't have to deal with self-assessment tax returns and HMRC, purchase additional insurances to meet the client contractual requirements and management of tax deductions. Additional umbrella employees have access to auto-enrolment pensions which helps them save for the future.
Q: What values does Cool Company go behind?
We believe that everyone has the right to work safely regardless of being a contractor or full-time employee. As an umbrella company, we are responsible for ensuring that contractors are supported not only from a legal perspective but by providing a flexible and functional solution.
Q: What is the difference between being a contractor vs being an employee?
The term employee is usually in reference to permanent employees, however, contractors working via an umbrella are both a contractor (to their client) but also an employee legally. This is one of the benefits of an umbrella solution you get to undertake contract roles with the benefits of employment.
Q: Why should people choose contracting over permanent work?
Contracting has many benefits, choosing assignments you want to work on, the ability to be your own boss. But in my experience, it’s the flexibility provided by contracting that draw people to it. Of course, some contracts are paid more than employed counterparts but for some, I think flexibility is the key.
Q: What is the difference between an umbrella company and a limited company, and why Is an umbrella company a better choice?
This is a difficult question to answer in the current climate as working via a Limited Company is no longer only the contractors choice due to the IR35 Private sector reform. I would say both have great benefits over the other but only if Limited Company working is available to the contractor.
Q: What tips do you have for someone who wants to be a contractor?
The key tips are to do your research and select the roles that benefit your goals. We have an article here that gives a more in-depth tip for today's contractors.
Q: How do I join Cool Company?
Joining Cool Company is as easy as signing up to your favourite online shopping site. By creating an account and uploading your compliance documents you are ready to use our service in minutes, for more information on what we do and how to join check out our website www.coolcompany.com/uk