Umbrella company is an intermediary that employs temporary workers and manages their payments. Temporary contractors employ umbrella companies so that they don’t have to go through the hassle of managing their payments, taxes and insurance.

Before paying the worker, the umbrella company deducts all the necessary taxes and contributions like PAYE and NI (National Insurance).

It is estimated that there are over 500 umbrella companies in the UK.

Yes, umbrella companies are 100% legal. Many temporary workers use umbrella companies for their assignments.

The government has not yet regulated umbrella companies in the UK. So, the answer is No. There aren’t any HMRC-approved umbrella companies.

There is no regulatory body for umbrella companies in the UK. There are only membership bodies like the FCSA, APSCo and Professional Passport.

There is no 1 way of finding the best umbrella company. The only way to go about appointing the right one is by doing complete due diligence before appointing them.

First and foremost, by appointing an umbrella company, you skip the hassle of managing your payments, taxes, and insurance contributions. It works best, especially for short-term assignments.

You don’t have to go through the hassle of setting up a limited company and then managing it. The administrative burden is reduced to a great extent, which allows you to focus on your core work.

It totally depends on you as to which trading method you want to opt for. Certain companies/end clients do have specific requirements which you may need to adhere to.