If you’re new to contracting then an
umbrella company is probably the best way to work. An
umbrella company covers all aspects of payroll and administration associated with being a contractor whilst providing the benefits of being a temporary worker. They’re quick to join and easy to use and have many advantages. If you use an
umbrella service such as
My Max from PayStream, you become an employee of the
umbrella company. That means you don’t have to worry about taxes, IR35 compliance or keeping detailed accounts.
We will invoice clients for you and then handle your PAYE and NI deductions, just like any other employer, meaning that the money you receive is yours to spend. You can also claim tax relief on allowable business expenses, maximising your take-home pay.
So there you have it, an
umbrella company in a nutshell. Hopefully this has helped to explain what an umbrella company is and how it can benefit you when working as a contractor.