Umbrella companies

Umbrella companies employ contractors under the terms of a permanent contract of employment, meaning that the individual receives all 84 statutory rights and employment benefits whilst also having the flexibility to work for a series of different end-clients.  The umbrella company provides employment benefits such as access to pension schemes, paid leave for holidays, maternity, paternity, sickness etc. The umbrella company is also responsible for the provision of appropriate insurance. The umbrella company also undertakes all of the necessary administration such as checking visas, invoicing the agency for any work undertaken, collecting payment and calculating the amount to be paid to the freelancers, ensuring that  appropriate PAYE tax and NICs are paid to HMRC.