What is an Umbrella company
If you are taking on a short term contract or just dipping your toe into the contractor market for the first time, you may want to consider working under an Umbrella company.
You’ll be employed by the Umbrella company and able to enjoy the flexibility of contracting under one continuous employment. The Umbrella company will take care of your tax deductions and make sure you’re paid on time, leaving you to focus on your work.
Umbrella company process
- The Umbrella contracts with the agency
- The Umbrella invoices the agency for the hours you have worked
- The Umbrella is paid by the agency
- The Umbrella deducts its margin and costs
- You will then receive payment from the Umbrella
- All taxes and National Insurance are deducted and paid to HMRC.
- Fully employed by the Umbrella company
- No administration burden on set-up or ongoing
- Continuous employment across multiple contract roles
- Usually comes with wide-ranging benefits
- Usually includes business insurance
- Notifications of when you get paid
- Continued contributions to workplace pension schemes
Our Umbrella solution includes everything you need
Dedicated customer service team
Wide-ranging employee benefits
Easy management of timesheets
Full employment rights
SMS notification when you are paid
Business insurance included
Workplace pension contributions included
Refer a friend incentive
Industry news, analysis and expert opinions
With Tier 2 lockdown encouraging thousands of people to work from home, can this still be seen as a indication of an ‘outside’ IR35 role?
A meeting yesterday with HMRC revealed umbrella companies should not be classed as ‘intermediaries’ under the April 2021 off-payroll legislation.
If you’re considering starting out as a contractor, read our Guide to Limited Company Contracting to learn how to set up your PSC and make the most of limited company contracting.