To help, Umbrella Supermarket have put together some key information on what contractors can expect from both an umbrella company and PAYE agency, so you can take the best route forward based on your contracting needs.
Before we look further at the two options, let’s first outline what the key differences between umbrella and PAYE are.
The PAYE route is when a contractor chooses to work with a PAYE agency. The agency is responsible for finding and securing the contractor’s work, paying them a salary and taxing them through the pay-as-you-earn (PAYE) system.
On the other hand, with the umbrella company route, contractors are free to choose and secure their own contract work, but are similarly paid a salary by the company and taxed in line with PAYE tax bands.
As both PAYE agencies and umbrella companies process the contractor’s tax through the PAYE system, with both options the contractor will pay the same levels of tax. The main difference lies in how the contractor gets work.
With a PAYE agency, the agency will find and secure work for the contractor, whereas with the umbrella route the contractor can choose their own work.
Now we have explained the differences between both options, let’s break down the pros and cons of each.
Now let’s move on to PAYE agency pros and cons. The advantages of this way of contracting include:
Having looked at both the pros and cons of each option, contractors can make the best decision about the best route forward for them.
When it comes to making your decision, contractors should remember that they will pay the same levels of tax in line with PAYE tax bands. However, with the umbrella company route, contractors usually have the ability to claim business expenses which can be offset against their tax bill, which is one main advantage to this route.
What’s more, with the ease and simplicity of receiving one handy tax code and the freedom and flexibility of choosing your own contracts, many contractors choose this option as the best route forward.
If this sounds like the best way forward for you, the next step is to find the best umbrella company to work with. That’s where an umbrella company calculator comes in handy.
For contractors that have chosen the umbrella company route, the next step is to find the perfect umbrella company for your needs.
After all, there are plenty of umbrella companies out there all offering different levels of service and benefits. Although it is great to have lots of choice, this can make it hard to cut through the noise and find your perfect match. That’s why we offer an award winning umbrella calculator to allow contractors to input their details and find a list of umbrella companies that best suit their needs.
Contractors can simply enter their details, preferences and daily rate and browse through the best umbrella companies for them. We even show you what your payslip would look like under each company. We don’t take your details and phone you back, we give you results there and then. Why not see what we can do for you today?
Any contractor considering switching to an umbrella company will want to know how to find the best provider to work with.
Although you could spend your precious time and energy searching the web for the best umbrella company, there is an easier way – using an umbrella calculator.
In this guide, Umbrella Supermarket explains why every contractor should use an umbrella calculator in 2021.
If you are considering contracting you will need to decide on PAYE or umbrella.
It can be a difficult decision to make and contractors will inevitably be questioning which option will be the best for them.
To help every contractor get on the right track for them, in this guide Umbrella Supermarket looks at PAYE vs umbrella, outlining the key differences and how this will impact you.
There are many reasons that contractors across the UK opt to work under an umbrella company.
Umbrella companies offer an easy way to contract and remove the need for the contractors to worry about the burdens of admin, finances, tax and IR35, all things that limited company contractors have to deal with.
For this reason, many contractors will be weighing up their options and questioning whether it is worth using an umbrella company in 2021. To help make the decision that little bit easier, Umbrella Supermarket has put together this guide on the pros and cons of using an umbrella company.
Any contractor that is considering operating through an umbrella company in 2021 will need to understand Umbrella Company fees - from why an umbrella company charges fees, how they are paid to how much the contractor will pay.
In this guide, Umbrella Supermarket answers those all-important questions to help every contractor know exactly where they stand when it comes to umbrella company fees.
If you’ve made the decision to contract through an umbrella company in 2021, you will next need to find an umbrella company that’s right for you.
After all, there are lots of umbrella companies out there, so how do you know which one to choose?
To help you find the best umbrella company for you, in this guide Umbrella Supermarket outlines what makes a good umbrella company, so you can rest assured you’re making the right move.
One of the many advantages to operating through an umbrella company for contractors is that they become an employee of their chosen provider.
In turn, this means that the contractor will be automatically enrolled onto the umbrella company’s workplace pension scheme.
To help contractors find out more about umbrella company pensions Umbrella Supermarket has put together this handy guide.
If you are considering contracting through an umbrella company you will naturally have questions and queries over how they work.
After all, making the move to umbrella can be a big step for contractors. To help, in this guide Umbrella Supermarket explains how to get started with an umbrella company and share our top tips for using one in 2021.
PAYE or umbrella is a question asked by every contractor. Which one you opt for will have a big impact on your contracting career and lifestyle. So, it's important to make the right decision for you.
To help makes things a little bit easier, Umbrella Supermarket has put together this guide on PAYE or umbrella, outlining the key differences between each, to help you make the best and most informed decision for you.
One of the many benefits to working through an umbrella company is that you will receive holiday pay as well as a range of other statutory benefits including sick pay, maternity and paternity pay.
To find out more about umbrella company holiday pay, and how to calculate how much you will be entitled to, Umbrella Supermarket has put together this handy guide.
Contractors must make several decisions throughout their contracting careers. One big decision contractors have to make is how they will operate.
One way that contractors can work is through an umbrella company.
Umbrella companies have become an increasingly popular way to contract in the past few years, offering many benefits to the contractor. But, how do you know whether this option is right for you?
To help every contractor make the right decision for them, in this guide, Umbrella Supermarket explains when not to use an umbrella company.
There are tons of benefits to using an umbrella company, which is why they have become such a popular option for contractors in recent years.
After all, an umbrella company takes away the stress and hassle of operating through a limited company whilst offering contractors a range of advantages, such as statutory rights, paying them a salary, deducting correct tax levels and National Insurance, and taking care of tasks like expense processing and invoicing.
However, as more and more contractors opt to use the services of an umbrella company, more providers have started to claim that they are HMRC approved.
To bust the myths around HMRC approved umbrella companies and get straight to the facts, in today's guide Umbrella Supermarket look at whether HMRC approved umbrella companies really exist, so you know exactly where you stand.
If you're considering making the leap to contracting, you will understandably want to know how much you will have to pay in umbrella company costs. After all, this amount comes directly out of the contractor’s pocket, so it’s important to be clued up on how much you should expect to pay.
To help contractors, in this guide Umbrella Supermarket answer the all-important question of how umbrella companies cost in 2021.
