Question 1

What is an umbrella company?

Accepted Answer

An umbrella company offers sustained employment to contractors engaged in fixed-term assignments.

Such companies serve as intermediaries between the contractor and their agency or end client.
By engaging with an umbrella company, the contractor can maintain their employment status even after the completion of their contract or while seeking new assignments.

Additionally, the contractor's employment contract remains valid even if they are working on multiple assignments simultaneously.

Question 2

What is IR35?

Accepted Answer

Inside IR35 legislation applies to contract workers who operate as a ltd company and work for a 3rd party to provide specialist services to the client that they are working for at any time.
As an operative working inside IR35 you are expected to pay the same amount of Tax and N.I that a permanent employee would pay.You are subject to PAYE and have the correct funds deducted from your pay each month.

Outside IR35 legislation applies to those operating legitimately as a contractor and are being paid by their limited company. As a contractor operating outside IR35, you are responsible for ensuring you are paying the right amount of Tax and N.I

Question 3

What makes a good umbrella company?

Accepted Answer

- No joining or leaving fees: None of our umbrella’s charge you when you join or leave, just when you use their services. 
- Simple sign up: digital sign forms delivered to your inbox instantly so that you can start your next assignment without delay.
- Time saving: Signing up with the right umbrella will save you time, paperwork, and work seamlessly with your agency.
- Inclusive insurance: All your insurance needs covered. Employers liability, public liability and professional indemnity
- Dedicated account managers: A friendly professional who understands exactly what you need, and only one call away
- Same day payments: No delay in the transfer of funds from your agency to the umbrella, then paid into your bank account on  the same day.
- Secure online portal: Access your contracting information when you need it through our intuitive HMRC compliant and accredited portal. Peace of mind that you are working with a compliant umbrella company.

Question 4

Why use an umbrella company?

Accepted Answer

The main advantage of working through an umbrella company is convenience.

It is a quick and straightforward process to set up, provided that you can provide the necessary paperwork to prove your eligibility to work in the UK.

Additionally, working through an umbrella company typically involves less administrative work, responsibility, and cost compared to having your own limited company.

The umbrella company manages all aspects of payment administration on your behalf.

You can also benefit from being employed, which includes receiving statutory payments if you are unable to work and the option to enroll in a workplace pension to save for your retirement.

Frequently asked questions

What is an umbrella company?

What is IR35?

What makes a good umbrella company?

Why use an umbrella company?