Deciding whether to work through an umbrella company, agency payroll, or a limited company can be confusing. You need to consider your circumstances to determine which is the best option for you.
If your assignment falls inside the scope of the IR35 legislation, then working as an umbrella company is likely the best solution for you. The Oasis team has vast expertise, so you can rest assured that we can provide you with the support you need to help make your decision and to keep you on the right side of legislation.
What Is An Umbrella Company?
An umbrella company is a simple and easy way to get paid as a contractor.
An umbrella 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 is 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.
What are the benefits of using an Umbrella Company?
Using an umbrella company to process your payroll will give you freedom from worrying about all your tax affairs being taken care of and paid to HMRC accurately. To fully understand the benefits of using an umbrella company such as Oasis Umbrella, it is important that you first know what they are. The following list should give a good representation:
You will only pay the umbrella company margin for the weeks that you are working – if you are not working you don’t pay anything!
Umbrella companies are ideal for short-term contracts or if you are new to the world of contracting.
There is no joining fee, exit fee or tie-in period.
Registration can be done in a matter of minutes!
You benefit from statutory employment rights and benefits such as sick pay, maternity /paternity pay etc.
Staying with the same umbrella company gives you continuous employment which is important when applying for mortgages.
Your umbrella company processes all payroll (including invoicing) – you send your signed timesheets to your recruitment company or umbrella company.
There are no unexpected tax bills as your umbrella company makes all the necessary PAYE and NI deductions for HMRC.
Oasis Umbrella takes pride in being able to offer a proactive service with timely billing, easy-to-follow processes, quick invoicing, prompt payments, and most importantly, transparency and flexibility.
We are always willing to go the extra mile to support our contractors and agency partners, offering flexibility, bespoke solutions and unique processes designed to meet specific requirements.
Contact Oasis Umbrella today to learn more: