Umbrella Companies for UK Contractors | Compare DASA, Caroola, PayStream & Umbrella.co.uk

Umbrella Companies for Contractors

Compare umbrella companies including Contractor Umbrella, Caroola Group and Paystream. Learn how umbrella companies work and decide if switching is right for you.

Featured partner

Contractor Umbrella

Award Winning 23 Year Experience FCSA and SafeRec certified

We are the hassle-free, straight talking umbrella company that provides umbrella employment for UK based Contractors and Freelancers. Award winning, FCSA and SafeRec certified with over 23 years' experience, we are one of the longest standing and most respected umbrella companies in the UK. Our Service Guarantee ensures all employees and clients are looked after at every step of the way. Dual service with our sister company Dolan Accountancy for limited company accountancy.

Caroola Group

Secure & Compliant Trusted Services

Caroola Group specialises in providing secure, compliant, and trusted umbrella payroll, accountancy, tax, and bookkeeping services for contractors, freelancers, sole traders, and small businesses across the UK.

PayStream

Continuous Employment Mortgage Support

Enjoy the freedom of contracting with the added benefits of continuous employment, making applying for loans and mortgages easier.

What are umbrella companies?

Umbrella companies offer a convenient way to trade for many IT contractors. Some contractors either have no wish to, or are unable to, set up a limited company and in these instances umbrella companies are the main alternative. Other contractors may just wish to contract in the short term, perhaps just a few months, which makes setting up a limited company unviable. Umbrella companies became increasingly popular after the IR35 legislation was introduced over ten years ago, and even more so since the IR35 reforms in 2021.

Umbrella companies organise the paperwork on behalf of the contractor, who is employed on a PAYE (Pay As You Earn) basis by the umbrella company – meaning IR35 (and the MSC Legislation) no longer becomes a worry. If you decide to trade through an umbrella company you'll be able to claim some of your business expenses against your tax (i.e. 'allowable' expenses incurred such as travel, meals, and accommodation whilst going about your work) as an additional benefit.

Leaving the day-to-day administration to the umbrella company is a benefit to many contractors who don't want such distractions from getting the 'real' work done. All you have to do is provide your timesheet and details of expenses to your umbrella to get paid. In short, umbrella companies make contracting much easier by invoicing the client, chasing for payment if it becomes overdue, processing your expenses and sorting out your tax and National Insurance contributions.

You can find out more about working through an umbrella company on the government website here.

Umbrella Company Guides

Stay Updated with ContractorUK

Weekly contracting news, IR35 updates and expert insights. No spam — unsubscribe anytime.

Join 50,000+ contractors who read our updates.