UMBRELLA COMPANY

Umbrella businesses have thrived in the UK over the last decade and may provide a 'hassle-free company structure for many contractors. With hundreds of providers on the market, we examine how a PAYE plan works in practice, evaluate providers, and considerations to ask when selecting a scheme.

Due to ongoing legislation changes here in the UK and the reducing benefits offered when working via a traditional umbrella, the PEO is fast becoming a viable option for business's here in the UK.

When deciding on a payment structure, contractors might opt to establish their own limited business or employ an umbrella company.

It is a tax deduction system designed to deduct tax at the source for work done in the construction sector — an industry previously viewed as non-compliant with tax regulations.