- What Is An Umbrella Company?
An Umbrella Company is a halfway point between the agency employee and Limited Company routes. The Umbrella Company is set up and run by a third party.
The contractor becomes an employee of the Umbrella Company and all invoicing, VAT returns, tax, administration, bookeeping etc. are handled outside the control of the contractor.
The contractor is paid a salary related to his earnings. The concept is directed primarily at contractors on foreign assignment and some contractors use it as a first step towards having their own company.
The Recruitment agency pay the Umbrella Company which in turn pay the employee.
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