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What is an umbrella company?

How does an umbrella company work?

An umbrella company employs contractors typically working on short-term assignments for end-hirers. It gives contractors legal employee status and employment rights, whilst removing the complexity from temporary work. It’s the simplest way of working for most contractors, because there are no unexpected tax bills and you’re still entitled to statutory benefits, including a state pension and maternity leave.

Why choose an umbrella company?

An award winning umbrella company, like Focused provides contractors with legal employee status and employment rights and handles all of the complexities that come with working as a contractor. It’s a simple, hassle free way of working, leaving you with no unexpected tax bills and as it’s flexible, you can remain in continued employment regardless of the length or number of assignments you work on.

Joining an umbrella company

If you fall inside IR35, then joining and working through an umbrella company is the easiest way for contractors like you to work. But how do you join?

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Step 1

When you’ve made the decision to join an umbrella company, they become your employer.

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Step 2

The umbrella company, such as Focused, invoices the agency or end client and they in turn pay the money directly to the umbrella company.

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Step 3

The umbrella company will deduct all of the necessary employment costs, PAYE and National Insurance contributions before paying you.

Try our umbrella take home pay calculator

Our umbrella take home pay calculator will provide you with a quick estimate of how much you could earn working through an award winning umbrella company, such as Focused.

Get an estimate

We’re committed to the highest standards

We’re FCSA accredited, so we’re held to the highest industry standards of compliance, transparency and reliability, something that The Contracting Awards 2024 also recognised when they awarded us the Best Umbrella Company (500 – 1000 clients).

Ready to talk?

Simply call 0161 923 0210, and let us take it from there.

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