Is An Umbrella Company the Right Option for You?

The two main options for getting paid as a contractor are becoming a director of your own limited company or contracting through an umbrella company. If you are unsure, a no-obligation discussion with our specialists can help you to understand your payroll options and which is best for you.

While there are many benefits to be had by setting up your own company, it sometimes may not be possible or the right option at the moment – for example if your contract is caught by IR35, if you’re only contracting temporarily, etc. Keep reading to find out who should use an umbrella company.

The alternative to having a limited company or your agency’s PAYE system (which is often not an option) is to use an umbrella company payroll provider. It is by far the easiest and most hassle-free way to get paid.

Who Should Use An Umbrella Company?

An umbrella payroll provider is an easy and hassle-free way to get paid. Umbrella Company UK is often used by:

  • First-time contractors who want to get used to working independently and are unsure if they will be contracting for a long time
  • Contractors who are earning £15 per hour or less
  • Contractors who prefer a more hands-off approach to payroll
  • Contractors who work on short-term assignments which last for 3 months or less
  • Contractors who are inside IR35 legislation and unable to operate through their own limited company
  • Those who cannot be a director or do not want to become one

Find out if using an umbrella company is your best option by contacting us or visit our umbrella FAQs.

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