An Umbrella company is simply a ready-made ‘limited company' that you use ‘as & when' needed. There are no long-term commitments required from the contractor as an Umbrella company is specifically designed for use only when you are in contract.

When you use an Umbrella company there's none of the usual burdens of formfilling & paperwork that are associated with running your own limited company, but all of the upsides like insurances and ‘limited' status.

Think of an Umbrella company service as a labour saving gadget: would you ever throw away your TV remote control and go back to switching channels by hand? Then why on earth would you want to fill in a raft of complex and detailed forms every month when there are Umbrella companies out there who will do it for you?

An Umbrella company is simply a 'mechanism' or 'device' that contractors use as an administration tool for their paperwork including, but not only, the all important ‘getting paid' part. Regard an Umbrella company as your administration and back up team, the ones that make sure your paperwork is in order and you are paid as quickly as possible.

There are alternatives to using an Umbrella company (like setting up your own limited company), but for at least your first contract we would recommend the Umbrella company route.

It is easy to sign-up with and begin working through a PAYE Umbrella company.

An Umbrella company will be straightforward to manage on an ongoing basis.

There's actually not that much to do - because the Umbrella company does all the work for you.

Meanwhile, you're doing things you want to do.

• In your client's eyes, you now have ‘limited company' status, so their recruitment policy is met.

• With an Umbrella company you get the legal status of an ‘employee', and all the perks that go with it, like, sick pay.
• An Umbrella company is like having set up your own ‘limited company' and hiring a fully trained & qualified personal assistant, who does absolutely everything for you. From knowing which bills are due, to reminding you to get your timesheet in so you don't miss pay day. They do your books. They sort out the problems.

Even if you could find someone skilled enough to be able to do all these different things, how much, do you think, would you have to pay them in salary? A small fortune! That's why you should chose an Umbrella company.

Acknowledge receipt of your timesheet and log the details against your records.

Raise an invoice in the correct & proper way, so your agency will pay for the work you've done without any hold-ups or delays.

Send your invoice to your agency, before any deadlines.

Collect your money from your agency on the due date.

Calculate the right amount of tax you should pay.

Provide you with a detailed payslip.

Transfer your net pay to your personal bank.

Liaise & deal with HMRC on your behalf in respect of: income tax, VAT and all statutory returns.

Let you know if you need to do anything and if so by when.

Don't forget to check out our exclusive discounts for members. It's fast & free and could save you a fortune in fees.