Umbrella Company vs. Pay as You Earn (PAYE) - as a contractor it's important to understand whether moving into a umbrella company rather than working under PAYE is the best route for you. An umbrella service gives you legal employee status and handles all the paperwork. It's the simplest solution for most contractors, with no unexpected tax bills and because you're employed you will still have access to state benefits such as a state pension and maternity pay. It also provides a record of continuous employment which will help with mortgage or loan applications, will ensure you're always on the right tax code and means you'll have just the one pension pot to manage. Why not take a look at our full infographic for a simple guide on the differences between working under Umbrella Company vs. PAYE.