You’ve taken the decision to go it alone and become a contractor so the thought of using an umbrella company might seem incompatible with your new career path. However, especially for those new to contracting, choosing the umbrella route offers some real benefits.
An umbrella company is an alternative to setting up your own limited company and it’s estimated that 14% of the UK’s professional contractors manage their business through one of them.
Umbrella companies act as an intermediary between contractors and clients and they are responsible for looking after payment for the work you do. Choosing the umbrella route means you retain the flexibility of contracting without having to worry about the administration and paperwork.
Working with an established umbrella company is a very straightforward process. It normally involves logging hours on timesheets which clients sign off before the umbrella company forward your payments to you. They calculate your tax and national insurance so you don’t need to worry about it.
As well as managing your payments, umbrella companies offer a range of other benefits to contractors. Sterling Umbrella enables contractors to claim back business expenses, offers holiday and sick pay, insurance and human resources and health and safety support.
It can be easy to dismiss umbrella companies but they do offer real advantages for contractors. Find out more about the benefits of Sterling Umbrella.