Who should use an umbrella company?

Ultimately, your IR35 status determines whether you can operate via your own limited company or may be better suited to using an umbrella company. For many contractors operating inside IR35, umbrella companies are a great way to get paid compliantly.

Churchill Knight Umbrella offers a reliable and trustworthy PAYE service to contractors and freelancers at any stage of their career and is often used by:

• Contractors deemed inside IR35 in the public or private sectors
• First-time contractors looking to get a feel for self-employment and try out contract work
• Contractors who do not want to run their own limited company or want to try contract work before starting their own limited company
• Contractors who are working on short-term assignments or multiple assignments alongside each other

If you are unsure whether an umbrella company is the right option for you, please give our Sales Consultants a call for a free consultation.

There are many benefits of using an umbrella company for your payroll:

• Compliance with UK tax law and HMRC legislation – Providing you use a compliant umbrella company, the correct tax deductions will be made to your pay and paid to HMRC on your behalf.
• Inside IR35 status determination – If you are deemed inside IR35, you do not need to worry about IR35 as you’ll be taxed at source, like a permanent employee (PAYE).
• Low cost – Umbrella companies will deduct a margin for their service, which is taken from your gross pay (before tax) and costs you a little less. A weekly margin is usually between £15 – £30 – considerably less than a contractor accountant!
• Continuity of employment – Your umbrella company will remain your sole employer, allowing you to work for multiple clients. Continuity of employment also helps when you apply for financial services such as a loan or mortgage.
• Employee benefits – You’ll have access to employee benefits, including Sick Pay, Maternity Pay and Paternity Pay, just like a permanent employee.
• Insurance – Most compliant umbrella companies will provide you with free insurance cover (Public Liability, Professional Indemnity and Employers Liability Insurance) as part of the service.
• Minimal administration – Unlike running a limited company, umbrella companies are a straightforward way to get paid, and once you have registered, there is very little ongoing administration (if any).