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  • Limited Company
    • Contracting via a limited company – advantages and disadvantages
    • How to set up a limited company as a contractor
    • Limited or umbrella company – which is best for contractors?
    • Choose a limited company name — and what to do If you change your mind
  • Umbrella Company
    • How to compare umbrella companies: 20 things to consider
    • Contractor umbrella company fees – how much do they charge?
    • How can you find umbrella company reviews?
    • Umbrella Company Directory
    • Umbrella Company Calculator
  • IR35
    • IR35 and Off-Payroll explained – a simple beginner’s guide
    • When was IR35 introduced? Timeline from 1999 to 2023
    • Download free IR35 contract templates and example clauses
    • Guide to IR35 contract review services for IT contractors
  • Accounting
    • Contractor accountants – what to look out for
    • Do you have to appoint an accountant for your limited company?
    • Your company annual accounts – the basics, and filing deadlines
    • Top 10 Contractor Accountants (2025)
  • Tax
    • What is the most tax-efficient director’s salary in 2025/26?
    • Corporation tax – guide for limited company contractors
    • Limited company tax basics for contractors
    • What are limited company dividends and how are they taxed?
  • Expenses
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Umbrella Company Guides

Many contractors – out of choice or necessity – work via PAYE umbrella companies.

This is a low-stress way of getting started as a contractor, although less tax-efficient than working via a limited company.

There are hundreds of umbrella companies out there.

It is crucial that you only sign up to an established UK-based PAYE umbrella, as there are some unscrupulous providers out there.

Use our concise guides to learn how this business structure works in practice, what to look out for, and how to find the best umbrella provider to fit your needs.

  • How much do umbrella companies cost? – the ‘margin’ or ‘fee’ charged by providers varies considerably.
  • Compare umbrella companies – how to compare umbrella providers – 20 things to look out for so that you can accurately compare umbrella firms.
  • Expenses you can claim via an umbrella company – HMRC has clamped down on the scope of reclaimable expenses, so what can you still claim for?
  • Umbrella company reviews – how to find genuine feedback on the bewildering choice of umbrella companies.
  • IR35 and umbrella working – does this infamous legislation affect umbrella contractors, or just limited workers?
  • Umbrella advantages and disadvantages – the pros and cons of working via a PAYE umbrella company.
  • Limited or Umbrella Company? – which is the best route for you?
  • Is your umbrella company payslip correct? – use online tools to make sure your deductions are correct.

Umbrella Company Directory
Umbrella Company Calculator

umbrella company tax return

Do you need to file a self assessment tax return if you use an umbrella company?

26th August 2024
If you are an umbrella company employee, you might need to file a self assessment tax return - if you receive income which isn't taxed via PAYE.
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ghost payroll

Umbrella contractors warned over ‘ghost payroll’ schemes

8th August 2024
A leading compliance firm has warned umbrella company workers to be aware of the latest scam to hit the industry - in the form of 'Ghost Payroll' schemes.
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register umbrella company

How do you register with an umbrella company?

7th March 2024
There are a number of steps to complete when you register with an umbrella company. Here, we explain how each step in the registration process works.
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umbrella holiday pay

Umbrella companies – what is holiday pay?

24th February 2024
As an employee of an umbrella company, you are entitled to receive statutory holiday pay. Here we look at how holiday pay is calculated for contractors.
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review umbrella companies

How can you find umbrella company reviews?

22nd February 2024
If your scan the web for umbrella company reviews, how do you know if the information you view is legitimate? Here's why you should be cautious.
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umbrella pros cons

The pros and cons of contracting via an umbrella company

14th January 2024
We look at the pros and cons of contracting via an umbrella company - seen by many as the "hassle free" solution by many.
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salary skimming umbrella

What is salary skimming and how do unethical umbrella companies profit from it?

31st May 2023
This article aims to elucidate the concept of salary skimming, its occurrence, and the steps contractors can take to secure transparent and compliant payment from their umbrella company.
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hmrc approved umbrella

Does HMRC officially approve any umbrella companies?

4th May 2023
In this article, we explain how compliant umbrella companies operate and whether or not HMRC officially approves any umbrella companies.
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hmrc umbrella company guidance

What HMRC umbrella company guidance is available?

4th April 2023
HMRC has published several pieces of guidance to help contractors, freelancers and industry stakeholders understand how compliant umbrella companies should work.
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move limited to umbrella company

Umbrella Company UK – £10 per week margin – special offer

8th January 2023
Umbrella Company UK is running a special promotion for Contract Eye readers. You can join today and benefit from a special £10 per week margin.
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