The number one question many umbrella companies are asked by their employees is: “why am I paying employers’ national insurance contributions?” – here we provide the answer and explain what other costs are payable by umbrella contractors.
Business Structures - Umbrella Companies
Virtually all IT contractors work via limited or umbrella companies. In this section, we explore how PAYE umbrella schemes work.
Almost all contractors who provide professional services to clients trade via their own limited companies, or join PAYE umbrella schemes. Here we’ve compiled a table to help compare the pros and cons of each structure.
Contractors receiving their first umbrella company payslip can sometimes find it challenging to understand exactly how their pay has been calculated and what deductions have been made. However, the actual payslip is fairly straightforward to understand once you know what to look for.
If you search the web for potential umbrella company providers, you’ll often find advertisements claiming to offer 90% or more take home pay after tax – using ‘compliant’ schemes. Here we examine why contractors should approach such schemes with caution.
If you decide to contract via an umbrella company, you will be entitled to receive holiday pay (as an employee of the company). Here we look at what holiday pay is, and how it is calculated.
Which type of business structure should you use? A basic overview of how limited and umbrella companies work, and some of the pros and cons of using each stucture.
If you’re working through an umbrella company, you may have noticed deductions on your payslip for the Apprenticeship Levy. Here we explain what this charge is, and how it is calculated.
Our complete guide to choosing an umbrella company; how a typical PAYE scheme works in practice, and key questions to ask prospective providers.
The only legitimate way PAYE schemes can compete with each other cost-wise is in the fees they charge their contractor clients. Here, we compare some of the leading umbrella companies, and explain why you should look out for hidden charges.
If you have decided to go down the umbrella company route, there are dozens of providers out there. Here we look at some important things to consider when you are choosing a prospective provider.