What is an umbrella company?

An umbrella company in the UK acts as an employer for tax purposes. It works by entering into an overarching contract agreement with a recruitment agency or client, and the contractor whom it provides its services for.

Umbrella companies are very common in the UK and are a popular payroll method for many professionals who work on fixed-term contracts. They are usually used by people who operate on £15 per hour or less, are contracting for three months or less, work in the public sector or operate inside IR35.

Find an umbrella company

There are hundreds to thousands of umbrella companies in the UK. You need to find a trusted and compliant umbrella company provider to handle your payroll. Avoid offshore and loan schemes who promise 90% take home pay.

Umbrella Company UK offers a stress-free, easy umbrella company service for a competitive margin. We provide comprehensive insurance, employee benefits and an exclusive employee rewards scheme – Umbrella Company UK Rewards.

We’ve provided contractor payroll services for 20 years, and work with hundreds of recruitment agencies to help contractors with their payroll. We’re founded on compliance, so you can rest easy using Umbrella Company UK.

Contact us to discuss setting up your umbrella company UK payroll, or fill in the contact form on this page to make an enquiry.

How does an umbrella company work?

Using an umbrella company is very straightforward, and requires minimal work on behalf of the contractor. Here’s how it works:

  • The contractor’s recruitment agency or client pays the worker’s wages to the umbrella company
  • The umbrella company deducts income tax and National Insurance on behalf of the contractor and pays it to HMRC
  • The umbrella company pays the contractor their net wages to their personal bank account

It’s that easy! All the contractor has to do is submit timesheets for work done.

Unlike limited companies where the contractor is completely in charge and gets no employee benefits, an umbrella company UK offers more support. It will provide comprehensive insurance cover, sick pay, holiday pay and maternity/paternity pay. Contact us for more details.

Who are Umbrella Company UK?

Umbrella Company UK is a leading UK PAYE umbrella company. Hundreds of contractors and freelancers have chosen us to take care of their payroll so that they can get on with their assignments without having to worry about getting paid.

Our sister company Churchill Knight & Associates Ltd was founded in 1998 and has helped over 20,000 contractors legally maximise their take home pay through a limited company. Recently, there has been a significantly increase in the number of self-employed professionals opting to use an umbrella company because of changes in legislation. As a result, a majority of Umbrella Company UK clients are either contracting in the public sector or are inside IR35 legislation.

If you would like to discuss how an umbrella company works and whether you are more suited to a limited company or umbrella, our experts are here to offer advice. Please call us on 01707 669023 or use the contact form at the top of the page.

Have a question?

Please use our form below to contact us or call us on 01707 669023.

  • This field is for validation purposes and should be left unchanged.