If you contract through a recruitment agency and want to use an umbrella, can the agent insist you use a provider on their preferred supplier list (PSL)?
Umbrella Companies
Virtually all IT contractors work via limited or umbrella companies. In this section, we explore how PAYE umbrella schemes work.
- Find out what a PAYE umbrella company does.
- Why you should be cautious when reading umbrella company reviews.
- How much do the leading umbrella companies charge?
- The pros and cons of using an umbrella company.
- Why the scope for claiming umbrella company expenses has narrowed due to the SDC rules
- Which structure is best for you? Limited or Umbrella?
- Umbrella company comparison - 15 top tips
5 essential tips to help you find the best umbrella
- Don't focus purely on the weekly cost. Good customer service and communication skills are just as important. Ask other contractors for recommendations if you're looking for a new provider.
- Only sign-up to a UK-based PAYE umbrella. Never use offshore payment tax avoidance schemes.
- The only difference between take home pay quotes between umbrella companies should be the margin (fee) they charge.
- If you're caught by the Off-Payroll (IR35) rules, consider a flexible umbrella/limited model of working, so you can switch between the two with ease. Most leading accountants/umbrellas offer this service.
- Find a trusted umbrella in our umbrella directory.
Limited or Umbrella Company – which is best?
Limited or Umbrella Company? We look at the pros and cons of each type of business structure. Which is the best route for contractors?
Understand your umbrella company payslip – including an example
How an umbrella company payslip is generated, and what the deductions refer to – using real-life example payroll data. Plus an example.
Advantages and disadvantages of using an umbrella company
There are several pros and cons to consider if you’re thinking about joining an umbrella company. Here, we look at the main advantages and disadvantages of becoming an umbrella employee.
Umbrella company reviews – can contractors trust them?
If you want to join an umbrella company, chances are you will conduct online research as part of the vetting process. Here, we look at why you should treat online ‘reviews’ with a degree of scepticism.
Umbrella company contractors – what is the Apprenticeship Levy?
If you work through an umbrella company, you might see deductions on your payslips for the Apprenticeship Levy. Here we explain what this charge is.
How to compare umbrella companies – 15 tips for contractors
Here are 15 things to look out for when you compare umbrella companies. Find the best umbrella and keep clear of rogue providers.
‘Rolled up’ holiday pay – new rules from January 2024
The Government has announced a reform of holiday pay rules which will allow many temporary workers to receive ‘rolled up’ holiday pay – reducing the chances of unscrupulous providers pocketing unclaimed (accrued) holiday funds.
Umbrella companies and holiday pay – how is it calculated?
You are entitled to receive holiday pay as an umbrella company contractor. Here we look at what holiday pay is, and how it is calculated.
Does HMRC already have the data to expose dodgy umbrella companies?
With the deadline now passed for submissions to the Government’s consultation into the potential regulation of umbrella companies, one particular question caught our eye at IT Contracting.