No, we are not talking about actual umbrellas, what we are going to be discussing is umbrella companies, what they are, what they do, and why they could just be of benefit to you.
Before we go any further, if you are looking for an umbrella company that is reputable and trustworthy, please take a look at Churchill – Knight who can be found below.
For those of you who are wanting some more info, please read on….
What is an Umbrella Company?
An umbrella company is a company that essentially acts as an employer to agency contractors working underneath a fixed term assignment, usually via a recruitment employment agency in the UK.
Why do recruitment employment agencies in the UK use umbrella companies?
Recruitment agencies issue contracts to a limited company as it means the agency liability will be reduced from what it could have been previously.
What are the benefits of using an umbrella company?
There are many benefits to using an umbrella company, however some of the more common ones are:
– Ease of Use – They are easy to use, fact. Contractors who use umbrella companies submit timesheets and / or expense claims to the umbrella company and get paid – simple!
– Tax and NI sorted – Tax and NI is calculated and deducted by the umbrella company prior to you receiving your wage. No more worrying is needed about working this out.
– Suited to both long and short term assignments – Ideal to use if you are a contractor with long and / or short term assignments and want minimal input yourself.
– All salary rates catered for – Umbrella companies offer suitable solutions for contractors at all salary rates.
– Very little paperwork to be completed – Other than timesheets and expenses claims, you won’t have to complete much other paperwork at all.
One other point of note is that if you are an umbrella company, you are usually able to claim basic expenses. Always make sure that you keep all receipts for all expenses that you are claiming, as they will be required should you ever be asked for them by HM Revenue & Customs.
So there we have a few little pointers and facts about the world of umbrella companies. Of course, we wouldn’t tell you to jump into using one from just reading our piece here, but we hope that you find it of some use when you are compiling your own data and research on them.
If you have any questions or queries, please feel free to ask. Otherwise, use an Umbrella today, it might just protect you.