Umbrella Companies exist for the sole purpose of employing “self-employed contractors” so that they can carry out short term assignments without the hassle of sorting out their own taxes or invoicing for their work. Most often the contractor will have found work through an agency, but not necessarily so.

The umbrella company acts as an ‘employer’ on behalf of its contractor employees. A contract is signed between the umbrella company and recruitment agency (or end client) on behalf of the contractor who will be carrying out the assignment.

The umbrella provides a payroll service to its employees, processes all timesheets and invoices, and pays its employees a salary after allowing for deductions.

Contractors use umbrella companies because:

  • Theit contract is within IR35
  • Their contract is outside IR35 but they don’t want to additional burden of running their own limited company.

We are please to announce that we now have our own umbrella solution, offering a hassle free service to contractors and freelancers, paying promptly, taking away the admin and leaving you to do what you do best. For more information please see or contact us on 01942 725419.