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Ccm
29th March 2012, 18:53
Hi,

I'm new to contracting and I need some help please. I was thinking of setting myself up as sole trader but after seeing the contract I got scared of the liability risks an I thought an umbrella company was the solution for me.

However, my client has sent the umbrella company a contract for me to sign. I though that the umbrella company signs the contract with the client and I sign an employment contract with the umbrella company. Hence, the liabilities fall onto the umbrella and not me.

Could anyone using an umbrella company, please, tell me if you sign anything with the client or if your umbrella does all of that?

Thank you for your help.

LisaContractorUmbrella
30th March 2012, 12:10
Hi,

I'm new to contracting and I need some help please. I was thinking of setting myself up as sole trader but after seeing the contract I got scared of the liability risks an I thought an umbrella company was the solution for me.

However, my client has sent the umbrella company a contract for me to sign. I though that the umbrella company signs the contract with the client and I sign an employment contract with the umbrella company. Hence, the liabilities fall onto the umbrella and not me.

Could anyone using an umbrella company, please, tell me if you sign anything with the client or if your umbrella does all of that?

Thank you for your help.

The relationship in the situation is that you are the employee of the umbrella company and therefore have a contract of employment with them. The umbrella company then has a business to business contract with the client.