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What Is An Umbrella Payroll Company?
An umbrella payroll company is a simple and easy way to get paid as a contractor.
An umbrella payroll company, or PAYE umbrella, is a company that contractors can join as an alternative to setting up (and working through) their own limited company.
When you join an umbrella, you become their employee. The umbrella acts as an intermediary between the contractor and the recruitment agency (or end client). It deals with your tax and national insurance payments to HMRC and means you don’t have to take on the responsibility of running your own limited company.
Your umbrella company invoices your agency or client and gets paid for the work you complete. Then they pay you through PAYE, deducting costs like taxes, National Insurance contributions and workplace pension contributions.