An umbrella company is a payroll administration company acting as an employer on behalf of its contractor employees who work on an assignment basis. The umbrella company deals with all of the administration including processing timesheets submitted by the contractor, invoicing the agency end client for payment along with the calculation and deduction of Tax and National Insurance Contributions for the contractor. The contractor will receive weekly or monthly payment instalments in accordance with the agreement entered into with their umbrella company.
A Limited Company is a business entity which is legally separate from its company directors, members and shareholders. As a result, the liability of directors, members and shareholders is limited by law if the company were to face legal action, declared bankrupt, or found themselves facing similar financial or legal issues. They are administrated by the Companies Act 2006, including associated legislation, and are a popular form of incorporated business structure in the UK. In 2012, there were 1.3 million active limited companies in the UK, compared to 1.8 million at present.
Contractor Market have built long lasting relationships with numerous umbrella companies and LTD Company providers. As a result of these relationships, we are able to offer preferential rates for payroll or LTD Company services.
Please call us for free on 0800 0662776 or fill out our contact form and one of our payroll brokers will be able to provide you with a free, no obligation comparison using that information, meaning you get an accurate take home figure on your earnings.