How an Umbrella Company Helps Contractors

What is an Umbrella Company?

An umbrella company is simply a ready-made ready-to-go limited company that contractors and temporary workers make use of while working.

An umbrella company is the hassle free alternative to

• Setting up and managing your own limited company or
• Working directly for a recruitment agency

There are no long-term commitments when using an umbrella company. An umbrella company is specifically designed for use only when you are working. You only pay for an umbrella company service when you are working.

Your Own Back-Office Support

When you use an umbrella company there's none of the stresses of constant form-filling & paperwork that comes with running a limited company, nor the financial penalties of working directly through a recruitment agency.

An umbrella company gives you all the upsides like expert professional guidance, inclusive insurances and limited company status. An umbrella company is a sophisticted administration service specifically designed for today's busy contractors.

Why Should Contractors use an Umbrella Company?

• Takes just minutes to register with an umbrella company - online or telephone
• An umbrella company is the hassle free way to work
• Paperwork & administration chores are not your strength

Benefits of Using an Umbrella Company

• You get limited company status with an umbrella company, so your client's recruitment policy is met
• You get the legal status of an 'employee' when using an umbrella company - so perks like, sick pay and maternity pay
• An umbrella company is the alternative to setting up your own limited company and hiring a fully trained & qualified personal assistant, who does absolutely everything for you.
• An umbrella company is your back office.

What Does an Umbrella Company do?

• An umbrella company takes responsibility for all paperwork and legal burdens
• An umbrella company raises invoices in the correct & proper way
• An umbrella company makes sure your money is paid on time with no delays
• An umbrella company calculates the right amount of tax you need to pay, provides a detailed payslip and transfers your pay to your personal bank
• An umbrella company deals with HMRC on your behalf in matters like
  • Tax
  • VAT
  • Statutory returns

Umbrella company's fees vary greatly from one to another. The good news is that the umbrella company service is an allowable business expense, so if the umbrella company's gross fee is, say, £100 you only pay about £75 after tax.