An umbrella company is an intermediary business that provides contractors with a service that manages their tax and national insurance payments obligations. Contractors operate as employees under umbrella companies and are provided with access to all their rights under the Employment Rights Act 1996.
Many contractors prefer using umbrella companies over other options because they allow for a greater amount of flexibility without the responsibility of running a limited company.
Umbrella companies offer contractors the security of being an employee with the freedom of running their own business. It is an ideal solution that meets all the legal requirements set by HMRC, offering security and freedom to contractors so they can focus on their clients and grow their business.