An Umbrella company operates as your employer and you will operate as their PAYE employee. The Umbrella signs a contract with Xperian Recruitment Limited and you will have a separate employment agreement with the Umbrella. Once the Umbrella has received your regular timesheets and expense claims, it will invoice us appropriately and then pay you directly.
You will not be an Owner / Director and you will not enjoy the tax advantages of running your own company, but you will benefit from less administration, immediate insurance cover (subject to service) and avoiding the concerns of tax compliance when paying yourself from your own company. The Umbrella will charge you a fee for their services and those fees are commonly deducted at source.
Each Umbrella company offers different services and their charges vary, so our advice is to shop around. Your key criteria should include
- reliability of payment to you,
- ease of processing,
- quality and scale of insurance cover and
- fee structure of the company.
Some Umbrella companies for your consideration:
- Giant giantgroup.com
- Parasol parasolgroup.co.uk
- Tarpon tarpon-uk.com