It can be challenging to run a limited company and a limited company won't always be the best choice for contractors.

If you're a new contractor, you may not want the hassle of instantly setting up a limited company. Similarly, if you know you're only going to contract for a short period of time, you're not going to want to go through the hassle of setting up a limited company only to have to dissolve it in due course. 

By using an umbrella, you will be relieved from all administrative burden associated with running a limited company. It means that you would not have to keep company documents, file VAT returns, and keep up with all the other duties you will have as a director of a limited company.

You would usually only keep timesheets when it comes to getting paid,  as well as any receipts and mileage records should you wish to claim expenses. 

The following outlines the steps we will take once you join Umbrella Academy:

After obtaining a contract or assignment to provide your services to the end client, Umbrella Academy, as your employer, signs a contract with your recruitment agency and you sign a contract of employment with us.

TImesheets are completed on a weekly basis and are sent to both your recruitment agency and Umbrella Academy.

Umbrella Academy will then invoice the recruitment agency, and the recruitment company will invoice the end client.

We will pay you your wages on due date and issue a payslip which you can access securely. 

No commitment

You don't have to sign long contracts with an umbrella company (which you could then struggle to get out of). If you run your own limited company, you are committed to continuing to work and trying to make the business a success even though you may notice that you're struggling down the road. If you join an umbrella, you can still change your mind and go back to a regular job at the end of the contract.

Less administration

When your company starts, you will have more work to do and, in turn, more administration. This can be a hard thing to reconcile when you're trying to do the best job for your clients. Not only can an umbrella  deal with all payroll related issues, but they will also have employees committed to chasing the payments and ensuring you are paid on time every time. 

Keep employee benefits

One of the aspects that is disadvantageous about working as a contractor is that you no longer enjoy employment benefits such as sick pay and holiday pay. Some (though not all) umbrella providers offer sickness and holiday pay, maternity/paternity pay, and professional liability insurance to make your working life more secure.