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There are lots of misconceptions about umbrella employment that unfairly tarnish the industry. Compliant providers are often tarred with the same brush as unscrupulous tax avoidance schemes, and these schemes typically masquerade as a genuine umbrella company to entice contractors to sign-up.
To some workers who don’t want the responsibility of running a company, it’s easy to see why choosing an umbrella company is an attractive option.
The benefits of using an umbrella company
It’s relatively straightforward to become an umbrella employee. You’ll become an employee of the umbrella company and sign a contract of employment.
As an umbrella company, we will invoice the client or recruitment agency the agreed assignment rate and deduct costs of employment including Employers’ NI, Apprentice Levy (where applicable) and Employer Pension Contribution. From this, the PAYE, National Insurance, and employee pension contributions are deducted from your gross pay before paying you your net salary.
Umbrella employees also have a continuous record of employment from the start date of their first assignment. This can potentially be a significant benefit when it comes to applying for loans and mortgage applications.
Why switch?
We know that contractors and freelancers are the backbone of the UK economy and that sentiment has been echoed by the government many times already. However that sentiment has taken a bit of a backseat during covid, IR35 reform and even Brexit. As a result of these three pressures, and even though umbrella employment has been a popular solution for contractors for many years, lots of contractors have chosen to switch to umbrella employment this year, in line with a desire for more security and peace of mind.
Overall, it can be stressful to work as an independent freelancer/contractor. By working for us, you’ll have both peace of mind, as well as the security of working for a legitimate umbrella company. Contact us today!
