What is an Umbrella Company?
Most people will only come across an umbrella company if they are in a contract, so do not worry if you are new to contracting and feeling a little overwhelmed by the amount of information. So what is an umbrella company?
An umbrella company is ideal for contractors who are looking for a simple solution for short term contracts, or just don’t want the associated risk of owning and running their own limited company. An umbrella company essentially acts as an employer to contractors and is an alternative to being paid through PAYE by your client or agency. A reputable umbrella company, like 360, enables you to maximise your take home pay compared to being paid directly by the end client. It ensures that you are fully compliant with all the necessary tax and insurance obligations you may have as a contractor.
How does it work?
Your umbrella company is responsible for issuing you with an employment contract once your contract work has been secured, which will provide you with your employee status. All contracts with 360 will be drawn up on the basis that you are a permanent employee, working for us, for a number of assignments.
When you become an employee of an umbrella company, like 360, you will receive all related statutory protection and employment rights, such as sick pay, maternity/paternity leave and minimum wage.
Your umbrella company will liaise with your agency/client and take care of all the administration. Since the introduction of the IR35 legislation in 1999, umbrella companies have been far more widely used by contractors to ensure all their obligations are met. By using an umbrella, like 360, you can get the best of both worlds, with the flexibility of contract work, supported by compliant solutions and all the benefits of being employed.
How we can help
If you are new to contracting, our professional, experienced and friendly team at 360 are on hand to answer any queries you may have about umbrella companies, services or how 360 can help you. As the longest serving umbrella company, we have the breadth and depth of experience to support your every need.
For more information on what an umbrella company is and how it can help you, call one of our expert team on 020 7471 3500