To see whether umbrella is the best option for you, in this guide Umbrella Supermarket outlines the 5 main benefits to working with an umbrella company in 2021.
In recent months, many contractors have made the move to umbrella in order to avoid getting caught out by upcoming reforms to IR35.
IR35 was first introduced in 2000 to prevents workers like contractors from operating as ‘disguised employees.’ It was implemented to stop workers from claiming to be self-employed in order to avoid paying tax and National Insurance, but who operated more like an employee.
When it was first introduced it was the contractors’ responsibility to determine their own IR35 status. However, this changed in 2017 when HMRC deemed that too many companies were not compliant. From here, in the public sector it become the responsibility to the client to determine the contractors’ IR35 status.
This led to thousands of contractors being wrongly classified as inside of IR35 and paying too much in tax as a result.
From April 2021, this will also apply in the private sector where it will become the responsibility of the client, not the contractor, to determine the contractor’s IR35 status. Understandably, thousands of self-employed contractors are concerned about IR35 reforms and how they will impact them.
After all, many of these contractors will end up paying more in tax as if they were an employee, but will not receive the benefits an employee is entitled to such holiday pay, sick pay and maternity or paternity leave.
This leads us on to one big benefit of working through an umbrella company, it means total exemption from IR35.
As the umbrella company makes the contractor their employee, the contractor is automatically considered outside IR35 and therefore doesn’t have to worry about getting caught up in it.
This takes us on to another benefit of working through an umbrella company, it entitles contractors to a range of employee benefits.
As we have mentioned, as the umbrella company employs the contractor, they therefore qualify for statutory rights.
This includes sick pay, paid holiday leave, a workplace pension and maternity and paternity leave.
This means that should the contractor wish to take a break, or unexpectedly falls ill, they can rest assured that they will receive paid leave. This is a big advantage of working through an umbrella company, contrary to a self-employed contractor who has to pay out of their own pocket should they wish to take any time off.
To find out more about umbrella sick pay and other statutory rights check out our handy guide.
Umbrella companies are well known for offering contractors the freedom and flexibility of contracting with the security of employment which is another reason that thousands choose this as a route.
Unlike with a PAYE agency which chooses what contracts the contractor has to work on, umbrella contractors are free to choose which contracts they work on and when, meaning more freedom over their careers.
This is a great option for contractors who want to choose which clients they work with and when, however don’t want to deal with running a business in the case of limited company contractors. After all, these contractors must set up and manage their own business, taking on admin tasks, paperwork and filing for self-assessment.
To find out more about umbrella vs limited company check out our handy guide.
Unlike self-employed contractors who have to file for self-assessment which can often be a complex task, umbrella contractors pay tax through PAYE.
This is because the contractor is an employee of the umbrella company. Because of this, the umbrella company pays the contractor a salary, processes their tax through the PAYE system and deducts what is owed from their income before it is paid to them. This means no tricky tax calculations or having to set aside part of your earnings for the end of year tax bill.
This makes contractors lives a lot easier and is another reason thousands of contractors choose this route.
The final benefit of working through an umbrella company is that it takes the hassle out of contracting.
After all, a self-employed contractor must source and secure their contracts, work on the contract whilst running their own business and filing for self-assessment.
On the other hand, an umbrella company takes care of admin tasks, invoicing the client and will even pay the contractor a salary meaning no complex tax calculations.
All an umbrella company contractor must do is submit their timesheet and focus on the contract at hand. Many contractors see this as a huge benefit as it allows them to strike a better work-life balance.
If you have looked at the benefits of working with an umbrella company and have decided this is the right path forward for you in 2021, the next step is to use Umbrella Supermarket’s umbrella company calculator to find the best umbrella company for you.
As contracting through an umbrella company has become an increasingly popular option, more and more umbrella companies have opened up to cater for demand. This can make it difficult to know which the best company to work with is.
That’s where our umbrella calculator comes in handy. Simply enter your details and in just 2 minutes we will generate a list of the best suited umbrella companies for your contracting needs so you can find the best umbrella company this new year.
Why not see what our umbrella company calculator can do for you today?
Any contractor considering switching to an umbrella company will want to know how to find the best provider to work with.
Although you could spend your precious time and energy searching the web for the best umbrella company, there is an easier way – using an umbrella calculator.
In this guide, Umbrella Supermarket explains why every contractor should use an umbrella calculator in 2021.
If you are considering contracting you will need to decide on PAYE or umbrella.
It can be a difficult decision to make and contractors will inevitably be questioning which option will be the best for them.
To help every contractor get on the right track for them, in this guide Umbrella Supermarket looks at PAYE vs umbrella, outlining the key differences and how this will impact you.
There are many reasons that contractors across the UK opt to work under an umbrella company.
Umbrella companies offer an easy way to contract and remove the need for the contractors to worry about the burdens of admin, finances, tax and IR35, all things that limited company contractors have to deal with.
For this reason, many contractors will be weighing up their options and questioning whether it is worth using an umbrella company in 2021. To help make the decision that little bit easier, Umbrella Supermarket has put together this guide on the pros and cons of using an umbrella company.
Any contractor that is considering operating through an umbrella company in 2021 will need to understand Umbrella Company fees - from why an umbrella company charges fees, how they are paid to how much the contractor will pay.
In this guide, Umbrella Supermarket answers those all-important questions to help every contractor know exactly where they stand when it comes to umbrella company fees.
If you’ve made the decision to contract through an umbrella company in 2021, you will next need to find an umbrella company that’s right for you.
After all, there are lots of umbrella companies out there, so how do you know which one to choose?
To help you find the best umbrella company for you, in this guide Umbrella Supermarket outlines what makes a good umbrella company, so you can rest assured you’re making the right move.
One of the many advantages to operating through an umbrella company for contractors is that they become an employee of their chosen provider.
In turn, this means that the contractor will be automatically enrolled onto the umbrella company’s workplace pension scheme.
To help contractors find out more about umbrella company pensions Umbrella Supermarket has put together this handy guide.
If you are considering contracting through an umbrella company you will naturally have questions and queries over how they work.
After all, making the move to umbrella can be a big step for contractors. To help, in this guide Umbrella Supermarket explains how to get started with an umbrella company and share our top tips for using one in 2021.
PAYE or umbrella is a question asked by every contractor. Which one you opt for will have a big impact on your contracting career and lifestyle. So, it's important to make the right decision for you.
To help makes things a little bit easier, Umbrella Supermarket has put together this guide on PAYE or umbrella, outlining the key differences between each, to help you make the best and most informed decision for you.
One of the many benefits to working through an umbrella company is that you will receive holiday pay as well as a range of other statutory benefits including sick pay, maternity and paternity pay.
To find out more about umbrella company holiday pay, and how to calculate how much you will be entitled to, Umbrella Supermarket has put together this handy guide.
Contractors must make several decisions throughout their contracting careers. One big decision contractors have to make is how they will operate.
One way that contractors can work is through an umbrella company.
Umbrella companies have become an increasingly popular way to contract in the past few years, offering many benefits to the contractor. But, how do you know whether this option is right for you?
To help every contractor make the right decision for them, in this guide, Umbrella Supermarket explains when not to use an umbrella company.
There are tons of benefits to using an umbrella company, which is why they have become such a popular option for contractors in recent years.
After all, an umbrella company takes away the stress and hassle of operating through a limited company whilst offering contractors a range of advantages, such as statutory rights, paying them a salary, deducting correct tax levels and National Insurance, and taking care of tasks like expense processing and invoicing.
However, as more and more contractors opt to use the services of an umbrella company, more providers have started to claim that they are HMRC approved.
To bust the myths around HMRC approved umbrella companies and get straight to the facts, in today's guide Umbrella Supermarket look at whether HMRC approved umbrella companies really exist, so you know exactly where you stand.
If you're considering making the leap to contracting, you will understandably want to know how much you will have to pay in umbrella company costs. After all, this amount comes directly out of the contractor’s pocket, so it’s important to be clued up on how much you should expect to pay.
To help contractors, in this guide Umbrella Supermarket answer the all-important question of how umbrella companies cost in 2021.
