What Is an Umbrella Company? How much does it cost to use one?
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Contracting through Umbrella Company
What Is an Umbrella Company? An Umbrella Company acts an employer for contractors and freelancers who work on fixed term assignments. There is usually a contract for services between the recruitment agency and the umbrella company on the contractor’s behalf who is going to be carrying out a particular assignment. The umbrella company engages the contractor under a contract of employment, offering full employment rights and processing PAYE after deducting it’s margin. Umbrella companies are very popular amongst contractors due to the benefits they offer and it’s easy to use them.
Is It Good for My Business?
An Umbrella Company is the easiest way to start contracting without having to go through any extra hassle or a headache. Irrespective of whether you are new to the world of contracting or have been in the game for some time, an umbrella company can offer the flexibility you need without going through the hassle of tax and admin issues.
Working as a contractor for an umbrella company can be the best decision you make as it will take care of all the myriad administrative issues such as invoicing and collecting funds from the end client or your agency. An umbrella company is also responsible for calculating all your NI and Tax contributions. It provides its employees with a payroll service, processes all the invoices and timesheets as well as pays a salary to all its employees after going through the standard deductions.
A contractor working under an umbrella company gets to enjoy all the benefits and perks of being an employee which includes employees’ pension contributions and holiday pays. In addition to that, you also get to enjoy maternity, statutory and paternity sick pay. Therefore, an umbrella company can be extremely good for your business if you do not want the stress that comes with running a limited company. Here is good read on LIMITED COMPANY OR PAYE UMBRELLA – Which Would be the Right Choice for Contractors?
What Are the Requirements?
On securing a contract position, the umbrella company signs a contract as your employer with your recruitment agency. You will also be required to sign an employment contract with the umbrella company.
You will be required to complete a timesheet on a weekly or a monthly basis. Thereafter, you must send the timesheet to both your recruitment agency and your umbrella company.
The umbrella company is responsible for then invoicing the recruitment agency. The recruitment agency is responsible for invoicing the end client.
On the receipt of payment by the umbrella company, you will receive your salary and payslip after deduction of necessary taxes.
Getting paid through an umbrella company is that easy!
How Can We Help?
If you are looking for a hassle-free and transparent umbrella service, you could not do better than us! We pay your salary promptly for all your hard work and also take care of your National Insurance, income tax and administrative tasks so that you can simply do what you do best!
We collaborate with countless recruitment agencies throughout the UK. Therefore, irrespective of whether you are on the lookout for establishing yourself as a brand-new umbrella freelancer or contractor or simply looking to change your umbrella company, we are the right fit. We possess all the tools as well as expertise that you need to carry on with your work without getting stressed about any kind of administrative and legal issues.
Our umbrella services are designed to work with recruitment agencies effectively. We collaborate with dozens of recruitment agencies throughout the UK and ensure an efficient umbrella payroll service for freelancers and contractors. Therefore, regardless of the nature of your business, we can help you reap all the benefits of an efficient umbrella company.
What Makes Us Different?
We stand apart from the plethora of umbrella services in the market. Choose us because:
We provide all-inclusive employee benefits that include sick pay, holiday pay, critical incident support, work-life support, adult care, child care, etc. In addition to that, you can also enjoy financial support counseling, clinical support as well as legal support counseling with us.
We pay our contractors promptly each week.
We initiate the payment process on the same day of receiving the invoice.
Our processes are compliant with HMRC rules and regulations.
We respond to your queries and concerns on the same day.
No hidden fee for joining or leaving
Expense claim processing on the same day
Set up and registration on the same day
We make your payments timely and ensure our contractors enjoy an increased level of flexibility and benefits when working with us. At DNS Accountants, we go the extra length for employee care, much more than what the majority of the multinational companies provide to their employees today.
With us, you can be your own boss and enjoy all the perks of joining a limited company without having to worry about the stress that comes with it. Therefore, all you are left to do is enjoy your work, receive prompt payments and let us handle your administrative and tax problems. Sounds too good to be true, right? That’s because it is!
Join us and take the first step to empowerment at work today! Email us at to find out how we can help you.
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