[ʌmˈbrɛlə ˈkʌmpəni]
An Umbrella Company is a middle man for contractors, freelancers and self-employed individuals. Members have less hassle but have to pay a membership fee.
An Umbrella Company is a type of employment intermediary used by Contractors, freelancers, and Self-employed individuals. It essentially acts as an employer for these individuals and deals with Payroll services.
An Umbrella Company reduces the amount of hassle and business admin required for their members. Members receive Employee benefits like sick pay or holiday pay and are paid through the PAYE system.
However, members might prefer to work without the help of an Umbrella Company as working with one reduces flexibility and Take-home Pay as members are required to pay membership fees to the Umbrella Company.
Members of Umbrella Companies will usually not have to deal with tax obligations as taxes will be automatically deducted through the PAYE system. However, certain individuals may still need to file a Self Assessment.
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