Joining an Umbrella Company

Joining an Umbrella Company can often be a lengthy process, especially if you are looking at contracting short term. If you choose this option, the Umbrella Company will carry out the administrative duties associated with contracting, such as issuing invoices on behalf of the contractor, collecting payments from clients/agencies and calculating Tax and NI before paying the contractor’s net pay into their personal bank account.  This generally works out more expensive than running your own limited company because their charges include all the administration overheads and they don’t tend to offer the same tax advantages.

Although we don’t specifically recommend a particular Umbrella Company, if you would like details of the most popular, please talk to our Contracts Manager, Emma Nicholson on 01892 771447 or email en@vector-uk.com.