If you’re an employee of an umbrella company, surely you don’t have to complete a self-assessment tax return, as your income has already been taxed at source, right?
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
- Use our Umbrella Company Calculator
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.
Important questions to ask umbrella company providers
If you have decided to join an umbrella company, there are dozens of options out there. Here we look at some important questions to ask potential providers.
What to do if your umbrella company goes bust
When an umbrella company goes bust or files for liquidation, hundreds of contractors can be left without pay. This worrying scenario can cause umbrella contractors a great deal of concern, but there are ways to mitigate the problem, by catching the warning signs early on.
How does an umbrella company work? 10-step walkthrough + examples
Our complete guide to choosing an umbrella company; how a typical PAYE scheme works in practice, and key questions to ask prospective providers.
What are umbrella company margins?
As an umbrella employee, you will see an entry for your provider’s ‘margin’ on your payslips. Here we explain what an umbrella company’s margin is, and how much it will typically set you back.
Umbrella company fees – the lowdown on costs
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.
Umbrella company employment costs and other deductions
If you work via an umbrella company, you will see deductions including ’employment’ costs’ on your payslip. Here we explain what these costs are, and what to look out for following recent cases of malpractice in the industry.
How to change umbrella companies – a stress-free guide to switching providers
If you’re currently an umbrella company employee but are unhappy with the service you are receiving, how do you change providers? Initially, it may sound rather daunting. However, changing umbrella companies is a straightforward process.
How to compare umbrella companies – 15 tips
Here is a concise list of 15 things to look out for when comparing umbrella companies in the UK.
Umbrella company reviews – can they be trusted?
If you’re looking for a new umbrella company, chances are you will conduct some online research as part of the vetting process. Here we consider why you should treat online ‘reviews’ with a degree of skepticism.