Each year thousands people decide to leave permanent employment for the freedom of contracting or freelancing this guide will aim to give you more information about how to make sure you are choosing the best umbrella company

Once made the decision to use an umbrella company to manage your finances when contracting, which is a great move for most people as they are designed to remove nearly all of the administration and management of your contract when compared to some of the other payment vehicles like limited companies.

Reasons to use a PAYE Umbrella solution

  • They’re designed to remove the administrative hassle of running a limited company
  • They’re extremely beneficial for short-term contractors as all the costs involved in the set up and running of limited company have been removed
  • You don’t need an accountant or a bookkeeper to be involved as its not necessarily to have company accounts, directors responsibilities or complete VAT returns.

All this freedom and lack administration does come at a cost, nearly all umbrellas will charge weekly or monthly fees (you can claim this cost back in expenses) and in some cases your net return in slightly lower when compared to a limited or offshore solution.