Umbrella company

An umbrella company is an employment business that acts as an ongoing employer to agency contractors. If you are working through an umbrella company, you are treated as an employee of that company. The company invoices the recruitment agency, and then pays the contractor under PAYE. The company is responsible for calculating your tax and national insurance contributions but if they get it wrong you could get in trouble with HMRC. It is important to be vigilant where you are working through an umbrella company. Check the tax and national insurance policy with the company and have a chat with HMRC about your particular situation. See - How to work out if you are employed or self-employed

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