What Are The Benefits of Joining An Umbrella Company?

There are many benefits to using an umbrella company rather than setting up your own limited company.

Your legal status is "employed"

As an employee you have full entitlement to state benefits like Statutory Sick Pay, Statutory Maternity Pay and a State Pension.

The umbrella company acts as your employer and so can provide a continuous record of employment which can assist with loan and mortgage applications.

Accurate Taxation

Umbrella Companies process your payments on a PAYE basis. Your tax and NI contributions are automatically calculated and deducted for you.

The umbrella company will make sure that you are on the right tax code and paying the correct amount of tax. There is no need for you to submit tax returns to HMRC. You are also eligible for tax relief on certain expenses.

The Umbrella Company manages all the administration

As the director of a limited company, you would have to handle all of your own administration regarding pay and ensure that you are compliant with all the associated rules and regulations. You would have to file your own tax returns and ensure your tax contributions are paid on time. Joining an umbrella company saves you the trouble as you become a PAYE employee.

Low Risk

If you are new to contracting, you can work under an umbrella company to see how it goes.

You can be up and running in a matter of hours with an umbrella provider.

Guaranteed Minimum Hours

A standard 336 minimum guaranteed hours per 12 months are generally provided for in contracts.

This means that the contractor will be paid at least 336 hours a year regardless of their contracts.

This represents one working day per week of paid work.

Guaranteed Minimum Hours

Your umbrella may be able to help you find your next contract as well as helping with CV writing and job applications.

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What Are The Benefits of Joining An Umbrella Company?

There are many benefits to using an umbrella company rather than setting up your own limited company.

Your legal status is "employed"

As an employee you have full entitlement to state benefits like Statutory Sick Pay, Statutory Maternity Pay and a State Pension.

The umbrella company acts as your employer and so can provide a continuous record of employment which can assist with loan and mortgage applications.

Accurate Taxation

Umbrella Companies process your payments on a PAYE basis. Your tax and NI contributions are automatically calculated and deducted for you.

The umbrella company will make sure that you are on the right tax code and paying the correct amount of tax. There is no need for you to submit tax returns to HMRC. You are also eligible for tax relief on certain expenses.

The Umbrella Company manages all the administration

As the director of a limited company, you would have to handle all of your own administration regarding pay and ensure that you are compliant with all the associated rules and regulations. You would have to file your own tax returns and ensure your tax contributions are paid on time. Joining an umbrella company saves you the trouble as you become a PAYE employee.

Low Risk

If you are new to contracting, you can work under an umbrella company to see how it goes.

You can be up and running in a matter of hours with an umbrella provider.

Guaranteed Minimum Hours

A standard 336 minimum guaranteed hours per 12 months are generally provided for in contracts.

This means that the contractor will be paid at least 336 hours a year regardless of their contracts.

This represents one working day per week of paid work.

Guaranteed Minimum Hours

Your umbrella may be able to help you find your next contract as well as helping with CV writing and job applications.

Read More

The quickest way to get
the best take home pay

Stop losing your hard earned cash!

Fill in your details below and start saving now!

Your information is safe: Privacy Policy