The umbrella company payroll option is similar both to agency PAYE and permanent employment, with a few key differences. Using an umbrella company is very easy to understand and straightforward to use.
Firstly, what is an umbrella company? An umbrella company is a payroll company that acts as an ’employer’ to temporary workers in order to deduct tax and NI on behalf of the worker. An umbrella company can be used by agency workers, temp workers, contractors and freelancers. Whether you work through a recruitment agency or directly via your end-client, you can benefit from using an umbrella company to process your payroll.