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What is an Umbrella Company?

An umbrella company acts as an intermediary between contractors and their clients or recruitment agencies. Here's a breakdown of what they do:

Payroll Management

They handle all payroll-related tasks, ensuring contractors get paid on time and accurately. Taking care of all tax obligations, including income tax and National Insurance contributions, ensuring compliance with UK tax laws.

Employee Benefits

Contractors working through an umbrella company can receive benefits such as holiday pay, sick pay, and maternity/paternity pay.

Admin Support

They provide support with administrative tasks, reducing the burden on contractors so they can focus on their work. The umbrella company also invoices the client or agency on behalf of the contractor, streamlining the payment process.


By using an umbrella company, contractors can enjoy the benefits of being an employee while maintaining the flexibility of contracting

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