If you have made the decision that working through a limited company is not the right option for you, working through a PAYE umbrella company may be an alternative worth considering.
The basic principle of an umbrella company is relatively simple. A contractor becomes an employee of the umbrella company, the umbrella company calculates and deducts the required PAYE and National Insurance contributions and then pays you your salary.
How this benefits you
There are a number of benefits associated with contracting through a PAYE Umbrella Company that make it a hassle free and desirable option, including;
- Freedom from the administrative burden of working through a limited company. By contracting through an umbrella company, you won’t need to deal with accountants, HMRC or companies house.
- Umbrella companies take care of invoicing and processing your payroll, so you can focus on your work rather than chasing payments.
- Enjoy the flexibility of working on multiple assignments whilst maintaining continuity of employment through a large organisation.
- As an employee of an Umbrella company you’re eligible to claim back business expenses that you may not otherwise have been able to claim provided you can prove you are outside of the Direction, Supervision and Control (SDC) of your clients.
- Umbrella companies provide access to employee benefits such as sick pay, maternity/paternity leave, holiday or redundancy pay.
Working through an umbrella company is essentially the best of both worlds, allowing contractors the freedom and flexibility of self-employment with the benefits of being employed.
We at One Click Group provide a range of umbrella services for contractors and freelancers. We pride ourselves on our personal approach and we would be happy to chat though your options to make sure you are confident in your decision.
If you have any additional questions or would like to learn more, please contact us today.
Along with over 13 years experience in the contractor payroll industry, and after spending most of his working life as a financial advisor in the regulated financial services industry, Mike has garnered an extensive network of contacts in the recruitment industry, many of whom trust both him and the One Click Group to handle their accounting. Mike has also been a member of various industry bodies throughout the years, such as the British Institute of Recruiters, in order to champion best practices across the contractor payroll industry.