Umbrella Company Guides

Umbrella Company - more guides

Check out our main umbrella company page for more information about contracting using this pay structure.

How to set up a UK umbrella company

The top 10 considerations when setting up an umbrella company for contractors.

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Written by Lucy Smith

Lucy has been in the umbrella market since 2013, and has always been an advocate of compliance and transparency in this industry. Offering Clarity by name and by reputation! Clarity Umbrella Ltd Lucy has sat on numerous HMRC round table events; contributed to the Low Income Tax reform group and is always on hand to provide advice to the ContractorUK forums.

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26th July, 2023 | Umbrella Companies

Top 5 umbrella company expenses things to still do in 2024 under 2016's T&S rules

A recap of the brolly ‘D-Day’ eight years ago, ahead of another (potential) upending this coming Wednesday.

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Written by Lucy Smith

Lucy has been in the umbrella market since 2013, and has always been an advocate of compliance and transparency in this industry. Offering Clarity by name and by reputation! Clarity Umbrella Ltd Lucy has sat on numerous HMRC round table events; contributed to the Low Income Tax reform group and is always on hand to provide advice to the ContractorUK forums.

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24th October, 2024 | Umbrella Companies

Umbrella company expenses rules: explainer

Despite some quick and shrewd learning from HMRC, the law in 2024/25 still doesn’t entirely prohibit expenses claims.

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Written by Crawford Temple

Crawford Temple is the CEO and founder of Professional Passport which is the largest independent assessor of provider compliance in the UK. Established in 2007, Professional Passport provides an independent compliance standard for the payment intermediaries market in an attempt to create a more level playing field across the sector and provide a positive differentiation for those providers operating in line with those standards.

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26th September, 2024 | Umbrella Companies

Contractors’ Questions: Is my umbrella company fobbing me off on expenses?

An umbrella suspected of putting a contractor’s expenses on the ‘too difficult’ pile simply needs to use a little-known mechanism, ‘YEA FPS.’

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Written by Graham Jenner

Graham is a Chartered Accountant and has run his own accountancy practice, Jenner Accountants Ltd, for over 20 years and is the MD of Nopalaver Group, which provides Umbrella company and other services to contractors. He specialises in dealing with family run businesses and contractors, supported by a strong team including 5 qualified accountants.

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25th September, 2024 | Umbrella Companies

Umbrella companies – seven things contractors must watch out for in 2024-25

Where brolly contractors need to be on the lookout once the new tax year starts on Saturday.

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Written by Meredith McCammond

After studying law, Meredith began her career in tax in 2002 at a 'Big 4' accountancy firm. Meredith joined LITRG in 2013. She leads on LITRG’s work on labour market issues including payroll and PAYE, false self-employment, agency workers/intermediaries and the gig economy. Meredith also volunteers for TaxAid.

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5th April, 2024 | Umbrella Companies

Five reasons why contractors should get behind HMRC’s new umbrella companies guidance for agencies

Some parts are overdue, but the taxman’s agency-brolly guidance gives recruiters less wiggle room, and sends contractors unmistakable signals when to be outraged.

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Written by Crawford Temple

Crawford Temple is the CEO and founder of Professional Passport which is the largest independent assessor of provider compliance in the UK. Established in 2007, Professional Passport provides an independent compliance standard for the payment intermediaries market in an attempt to create a more level playing field across the sector and provide a positive differentiation for those providers operating in line with those standards.

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11th December, 2023 | Umbrella Companies

Five contractor care tips for umbrella companies

Maybe chancellor Jeremy Hunt wouldn’t today be under as much pressure to regulate them if all brollies did these five, as standard.

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Written by Lucy Smith

Lucy has been in the umbrella market since 2013, and has always been an advocate of compliance and transparency in this industry. Offering Clarity by name and by reputation! Clarity Umbrella Ltd Lucy has sat on numerous HMRC round table events; contributed to the Low Income Tax reform group and is always on hand to provide advice to the ContractorUK forums.

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22nd November, 2023 | Umbrella Companies

Top 10 signs of umbrella company compliance

What contractors can look for to work out if a brolly is worth it or worrying.

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Written by Lucy Smith

Lucy has been in the umbrella market since 2013, and has always been an advocate of compliance and transparency in this industry. Offering Clarity by name and by reputation! Clarity Umbrella Ltd Lucy has sat on numerous HMRC round table events; contributed to the Low Income Tax reform group and is always on hand to provide advice to the ContractorUK forums.

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20th November, 2023 | Umbrella Companies

One timesheet or two? That’s the question umbrella contractors should answer in a flash to avoid faff

To head off frustration, duplication, and worse -- late payment, one is the magic timesheet number.

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Written by Lucy Smith

Lucy has been in the umbrella market since 2013, and has always been an advocate of compliance and transparency in this industry. Offering Clarity by name and by reputation! Clarity Umbrella Ltd Lucy has sat on numerous HMRC round table events; contributed to the Low Income Tax reform group and is always on hand to provide advice to the ContractorUK forums.

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8th November, 2023 | Umbrella Companies

What is real-time forensic auditing of umbrella companies?

An explainer on the new technology designed for workers and agencies to ensure their umbrella company is compliant and safe.

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Written by Sébastien Sauca

Sébastien Sauca is the CEO of SafeRec.co.uk, a leading compliance and technology firm at the forefront of safeguarding workers and recruitment agencies from non-compliant umbrella companies. With a wealth of experience in the recruitment industry spanning almost a decade, and a Master's degree in management and HR, Sebastien left a director position to address the compliance challenges he encountered throughout his staffing career.

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28th September, 2023 | Umbrella Companies

Umbrella companies – what good should look like

Five traits of a best-practice brolly, so you can tell if your umbrella is worth holding on to (or not).

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Written by Meredith McCammond

After studying law, Meredith began her career in tax in 2002 at a 'Big 4' accountancy firm. Meredith joined LITRG in 2013. She leads on LITRG’s work on labour market issues including payroll and PAYE, false self-employment, agency workers/intermediaries and the gig economy. Meredith also volunteers for TaxAid.

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16th May, 2024 | Umbrella Companies

Umbrella or PAYE: what is the difference?

How Pay As You Earn through an umbrella company differs from through a recruitment agency.

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Written by Lucy Smith

Lucy has been in the umbrella market since 2013, and has always been an advocate of compliance and transparency in this industry. Offering Clarity by name and by reputation! Clarity Umbrella Ltd Lucy has sat on numerous HMRC round table events; contributed to the Low Income Tax reform group and is always on hand to provide advice to the ContractorUK forums.

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17th May, 2023 | Umbrella Companies

Umbrella payslip: how should contractors check it is correct?

Reviewing your payslip and pay report is a must when you work through an umbrella company.

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Written by Crawford Temple

Crawford Temple is the CEO and founder of Professional Passport which is the largest independent assessor of provider compliance in the UK. Established in 2007, Professional Passport provides an independent compliance standard for the payment intermediaries market in an attempt to create a more level playing field across the sector and provide a positive differentiation for those providers operating in line with those standards.

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16th May, 2023 | Umbrella Companies

How umbrella company returnees on inside IR35 contracts can make Spring Budget's pension changes work for them

Another £9,000 thanks to the chancellor could well inspire IR35-hit contractors back into the fold, even via brolly roles caught by the legislation.

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Written by Matt Fryer

Matt is a Chartered Tax Advisor with 18 years' experience of advising on tax planning and compliance. Matt has been with Brookson since 2009, having previously worked for Big 4 accountants, KPMG and PwC. Matt’s primary role is to ensure that the services provided by the Brookson Group comply with relevant legislation and regulatory requirements. Matt is also a Board member of the FCSA, the UK's leading membership body dedicated to promoting supply chain compliance for the temporary labour market.

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26th March, 2023 | Umbrella Companies

What are ‘employment costs’ when contractors use an umbrella company?

A refresher on one of the key terms on your payslip -- still being bandied about the umbrella market.

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Written by Shelley Ankers-Wainwright

Shelley is the founder of S.A.W Consulting, a specialist consultancy business supporting Umbrella firms to be more compliant, efficient and competitive.

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20th December, 2022 | Umbrella Companies

Umbrella companies in 2023: what’s in store for contractor payroll firms

The FCSA, Professional Passport, Parasol, SAW Consulting and Clarity Umbrella do some crystal ball gazing for ContractorUK readers.

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Written by Simon Moore

Simon Moore is one of the UK’s most consistently published freelance journalists on freelancing, self-employment and contractor issues, such as IR35, the Loan Charge and late payment. Trained in News & Features writing by NCTJ-approved journalism tutors, Simon worked in the newsrooms of local, consumer and national press titles, before setting up his own editorial services company, Moore News Ltd.

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13th December, 2022 | Umbrella Companies

Umbrella company payslips: here’s what every contractor must see

Rate, deductions, conversation, and IR35. And possibly explorable in that order -- if you want to avoid nasty surprises as an umbrella employee.

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Written by Lucy Smith

Lucy has been in the umbrella market since 2013, and has always been an advocate of compliance and transparency in this industry. Offering Clarity by name and by reputation! Clarity Umbrella Ltd Lucy has sat on numerous HMRC round table events; contributed to the Low Income Tax reform group and is always on hand to provide advice to the ContractorUK forums.

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30th November, 2022 | Umbrella Companies

How to guard against salary skimming when using an umbrella company

What payslips need to look like, contain and not include, to help ensure you’re getting every penny that you’re due.

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Written by Kris Simpson

Kris Simpson is country manager at Cool Company where he is responsible for operations and compliance in the UK. He has more than 10 years’ experience in umbrella payroll and the recruitment sector.

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11th November, 2022 | Umbrella Companies

What is salary skimming and how does it hit umbrella company contractors?

A rundown on the inappropriate practice at the centre of allegations against one of the sector’s well-known umbrellas.

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Written by Crawford Temple

Crawford Temple is the CEO and founder of Professional Passport which is the largest independent assessor of provider compliance in the UK. Established in 2007, Professional Passport provides an independent compliance standard for the payment intermediaries market in an attempt to create a more level playing field across the sector and provide a positive differentiation for those providers operating in line with those standards.

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7th November, 2022 | Umbrella Companies

How contractors can spot and avoid a non-compliant umbrella company

Four big clues on when providers shouldn’t be touched with a bargepole.

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Written by Hannah Morrison

Hannah is a Senior Associate Solicitor in the employment team at Brabners. She qualified as a solicitor in 2016, having trained at Brabners since 2014, and has been advising contractors, recruiters and end-hirers throughout that time. Hannah is part of Brabners’ specialist recruitment sector team which provides advice on issues affecting contractors and recruiters as well as advising on matters including umbrella arrangements, the Agency Worker Regulations and NMW investigations.

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3rd August, 2022 | Umbrella Companies