Umbrella company advantages and disadvantages
Whether or not you should use an umbrella company is a big decision. There are plenty of advantages and disadvantages of using an umbrella company, and we’ve summarised the most common ones below. And, if you want a more in-depth look at umbrella company advantages and disadvantages, click on the links below to visit designated pages for each.
Umbrella company advantages
- Umbrella companies are the easiest way for a contractor to get paid.
- Registering with an umbrella is a quick and stress-free process.
- Contractors who use an umbrella company will get continuity of employment.
- There is no tie in period.
- Umbrella company margins are usually small, and are far lower-cost than contractor accountants.
- Umbrella companies operate PAYE – a compliant HMRC payroll system.
- Switching between an umbrella company and limited company is easy, and some providers offer both (making it even easier, and cost-effective).
- Umbrella companies are a great choice for first-time contractors.
- Contractors using an umbrella get access to Statutory Employee Benefits.
- Compressive insurance cover is usually included – with no additional cost.
- Some umbrella companies offer little extras, such as employee reward schemes (allowing contractors to get discounts when eating out, shopping, etc.).
- Umbrella companies will usually process payments using Same Day Faster Payments – meaning contractors will be paid on the same day umbrella companies get funds from the agency/end-client.
- Most of the big umbrellas have dedicated customer service departments – so contractors can get quick answers to any questions or concerns.
For more information, visit our page: Umbrella company advantages.