Umbrella - a relative termAn umbrella company is a substitute to being paid PAYE by your client or agency and is fully HMRC compliant. You become an employee of the umbrella company and receive all statutory rights. In addition, working through an umbrella company you can claim legitimate business expenses related to your contractual job. These expenses are off-set against your taxable income; this in turn will reduce your income tax and National Insurance liabilities, and increase your take-home pay.
You will be provided with a Contract of Employment which grants you with employment rights and statutory protection. All of the contracts that we provide are compliant with the Agency Workers Regulations (AWR).
An Umbrella Company is an ideal choice for individuals who are contracting for a short time or in-between permanent jobs, and are not caught by IR35 legislation. It is also the preferred option for contractors who do not want the extra responsibility of setting up their own Limited Company. Being part of an umbrella company; it ensures all you’re invoicing, expenses, tax; legal requirements are taken care of on your behalf, in return for a weekly deduction the umbrella company will take care of all the administration and paperwork.
“Finding the accurate Umbrella Company is a daunting task. Don’t be tempt by promises of a 90% take-home pay rate – companies offering this are likely to use illegal offshore schemes to achieve such a figure. Make sure that the Umbrella Company you sign-up with is compliant with HMRC and IR35 requirements.”
Umbrella Company – Benefits
- The Easiest way to contract and lessen your tax worries
- Umbrella companies are ideal for those who are unsure about contracting or are simply contracting as an 'in between' job as there is minimum input required.
- No need to search for additional reliable accountants
- 100% HMRC and IR35 compliant PAYE service
- Full Statutory Employment Rights
- Set-Off business expenses policy
- No invoicing hassle
- Fixed Margin, and only when you work
- Safe & Secure
- Get paid on time
- No year-end additional tax liabilities
- NI liability gets reduced
- No more spending your valuable time worrying about outstanding administration.
- You can use the umbrella company when and if required while contracting