Clarity Umbrella puts a new take-home pay tool from the taxman through its paces, with surprisingly pleasing results.
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.
- What does this mean? Our umbrella company glossary.
- Which structure is best for you? Limited or Umbrella?
- Umbrella company comparison - 15 top tips
- Calculate your net take home pay here.
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.
How to check if the deductions on your umbrella company payslip are legitimate
With tales of malpractice by some unscrupulous umbrella companies coming to light over the past few months, what can you do to make sure that your payslips aren’t hiding any hidden (possibly unlawful) deductions?
Umbrella company employment costs and other deductions
If you work via an umbrella company, your payslip will include deductions for ’employment’ costs. Here, we explain these costs are.
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.
Are online umbrella company reviews trustworthy? What to look out for
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.
Elective Deduction Model: a clear, present, future danger
The EDM, or hybrid model, is set to do a brisk business in 2025 — much to the potential damage of agencies, clients and contractors.
How to close down mini-umbrella company risk as a contractor
Mini-Umbrella Company fraud is likely to keep evolving into 2025-26. Here are six steps contractors can take to close down their MUC risk.
No Oscar for HMRC mini-umbrella company film, but at least it’s a warning, of sorts — experts
A new film by the taxman goes as far as saying suspected MUC fraud is cause to reconsider contract labour options. Other than that bit of drama, ‘Spielberg can rest easy.’
Ghost payroll schemes – warning for umbrella company workers
A leading compliance firm has warned umbrella company workers to be aware of the latest scam to hit the industry – in the form of ‘Ghost Payroll’ schemes.
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.