I've tried it on my ROUTER to where everything is running through the VPN service and it works but there are pitfalls to doing that. For example netflix knows when you are using a VPN and will throw an error and won't play. Some VPN providers do offer a dedicated static IP to remedy this essentially giving you an IP address that hasn't been flagged by Netflix yet.
The way I have everything setup depends on my particular needs at that time. For example using the Socks 4/5 proxy is good for using something like torrent and netflix at the same time. Again if you run the VPN service on your computer everything that accesses the net will run through it. Usually not a bad thing but again Netflix won't work. That's when it's a good idea to setup particular applications to run through Socks proxy, that way everything else still uses your normal ISP for data. Simply configure your torrent program to use socks 4/5 and then everything it does will be hidden from your ISP. Same with with KODI. If you don't want to setup KODI through a proxy you can just use the VPN service on the computer and then disconnect if you want to use NETFLIX.
Think of it like this. Lets say you have an apartment complex with free wifi. All users that connect will show the same WAN IP address. Well if you use a VPN service it's like you're on their network and now your external IP address will be whatever the IP address is of the VPN server. When you have a paid VPN service you can usually pick from servers around the world. If I choose a German server I will have a German IP address. That's why every site you visit sees your VPN IP and not your real one. Of course you ISP will know you're using a VPN but they won't be able to decrypt the data and see what you're doing. Now you could actually use TOR then connect to your VPN and your ISP won't know you're using a VPN.
Again you can certainly do that but what it can offer is limited. If your ISP is blocking certain content and your intent is to bypass it then your setup will not work because you are entering the net from your home IP address whether it's from your laptop or tunneling through your UBUNTU box. If you're at a place with free wifi and you want to check your bank account information without worrying about a man in the middle attack then yes you'll be able to VPN to your home UBUNTU machine and surf securely then yes that setup will work for that purpose. For you to get the blocked content you need to pretend to be somewhere you are not. You cannot do that with your home UBUNTU setup since the VPN servers IP address originates at your house.