An umbrella company employs temporary and contract workers, including agency contractors working on assignments.

When you join your chosen umbrella, you become their employee and they act as the intermediary between you and the end-client or agency.

They invoice the client and pay you via PAYE (Pay As You Earn) and charge a fee for their services, the fee depends on the services that you use.

Why use an umbrella company?

If you’re new to contracting, or want to have one recognised employer, an umbrella company could be for you.

  • They handle administration and accounting, including NI and Tax and other deductions where applicable
  • You receive the same employment rights as other employees
  • Umbrellas often handle or can assist with HR related matters
  • You have a written employment contract
  • You receive paid holidays
  • Umbrella companies may provide other benefits and services for a fee, these are optional

How to choose an umbrella company

At Advantage Resourcing we deliver a quality services and that extends to the companies that we do business with.

As part of that we have an approved supplier list of umbrella companies who:

  • Hold the levels of insurance our clients require
  • are fully accredited by the FCSA
  • comply with industry standards
  • are audited by us on a quarterly basis

Your recruiter can provide a copy of our Approved Umbrella Companies and you can choose the one which best suits your needs once you have secured a new opportunity.

What is FCSA Accreditation?

The FCSA (Freelancer and Contractors Services Association) is a UK membership body committed to raising standards in the employment services sector. Umbrella companies with FCSA accreditation have demonstrated they are fully compliant with their code of conduct including tax and employment law.

We work only with FCSA accredited umbrella companies for your benefit.

What about IR35?

Umbrella companies are designed for contractors operating inside IR35 which is a tax status that applies to a contract not the individual. They ensure the necessary taxes are deducted.

Have any questions?

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