As we have mentioned, there are several advantages to using an umbrella company. This is why this has become an increasingly popular way of working for contractors in recent years.
So, what are the benefits of operating through an umbrella company?
One of the many benefits of umbrella contracting is that it is a hassle-free, easy way of contracting.
Contractors can find, sign up and get started with an umbrella company within a matter of just hours.
Once they have signed up with their chosen provider, the company will take care of key tasks for the contractor, such as admin, finances and invoicing, meaning the contractor merely has to worry about the contract at hand.
So, unlike limited company contractors who have to deal with running a business and organising their accounts and finances on top of working on the contract at hand, the umbrella company takes care of all these tasks for the contractor, giving them a more stress and hassle free way of working.
As we have touched on, the umbrella company will take care of the contractor’s finances for them.
The contractor simply submits their timesheet to the umbrella company who will then invoice the client for the correct number of hours and make sure the invoice is paid on time.
The umbrella company also puts the contractor on their payroll, meaning once they have collected the fee from the client it will be processed through the PAYE system.
This ensures that the correct amounts of both tax and National Insurance are deducted from the contractor's salary prior to it it being paid to them, meaning contractors do not have to worry about tricky tax calculations and stressful self-assessment like limited company contractors do.
What's more, unlike contractors that operate under a limited company, umbrella contractors are not required to set up a separate business bank account for their earnings which come with associated fees. Instead, umbrella contractors can get paid in to their personal bank accounts, which makes life easier.
This is considered a significant benefit to umbrella company contractors as it takes away the burden of having to deal with the financial side of contracting.
As well as taking care of the contractor’s finances, umbrella companies also take care of the paperwork and admin for contractors.
Umbrella companies are responsible for tasks such as invoicing, processing expenses and any other admin and paperwork required.
Again, this helps to free up the contractor’s precious time and energy and means they can put more time into focusing on the contract at hand.
Another benefit to using an umbrella company is that your chosen provider becomes your employer.
This means that contractors are eligible to claim statutory benefits. These include holiday pay, sick pay, maternity and paternity pay and a workplace pension.
Again, these are benefits that limited company contractors do not qualify for. This means if they fall ill, need to go on maternity/paternity leave or merely wish to take a break, they will have to pay for this out of their own pockets.
The final benefit to using an umbrella company for contractors is that it is a way of working that allows them to avoid dreaded IR35 legislation.
IR35 is a piece of legislation designed to stop workers like contractors from operating as a disguised employee. This means workers that claim to be self-employed to gain the tax benefits of operating in this way, but work more like employees do.
IR35 was initially in play in just the public sector, however in April this year it was extended to the private sector as well. This has had a bad impact on thousands of limited company contractors in this sector.
This is due to the fact that if contractors are caught out by IR35 legislation they can become subject to stressful and often costly investigations.
However, by simply working under an umbrella company, contractors can ensure that they are exempt from IR35. This is because they are an employee of their chosen umbrella company, meaning IR35 does not apply to them.
This is a welcome sigh of relief for thousands of contractors and yet another reason why many contractors choose the umbrella company route over the limited company route
After reading our guide to the many advantages of operating through an umbrella company, if you have decided that this is the best move for you, you will now need to find an umbrella company to work with.
This can be easier said than done as there are many umbrella companies out there, and not all are created equally. In a busy market, contractors must make sure that they do their research in order to find an umbrella company that’s just right for them.
Our umbrella company calculator makes finding your perfect umbrella company a quick, easy, and stress-free task. To see how we can help you find the best umbrella company for your needs today, simply head over to our umbrella calculator and try it out for yourself 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.
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.
Every contractor faces the decision between PAYE or umbrella, but how do you know which is the best option for you?
After all, PAYE and umbrella both have key differences, meaning contractors should do their research to find the best path for them.
Thankfully, Umbrella Supermarket is here to help. In this guide, we take a look at PAYE vs. umbrella, explaining what you should know before making the all-important decision.
