Umbrella Company Working: The Benefits
For the freelance worker
- Employment rights such as holiday pay, pension arrangements, maternity/paternity rights, etc.
- Employment history whilst working on a contingent, multi-location basis:
- For your CV and LinkedIn profile
- For access to mortgage finance, etc.
- To support property rental agreements (CUL will provide references for ‘employees’ whenever requested).
- Joined up pay from fragmented working. Freelance workers often perform multiple assignments over a period of time, and the umbrella company consolidates its workers earnings and ensures that appropriate taxes are paid;
- Ability to claim travel and subsistence expenses subject to status (see Appendix 3).
- Peace of mind that all compliance issues are being attended to, for example:
- Travel and subsistence claims are being correctly processed;
- Payroll is being processed and reported to HMRC under RTI;
- Tax and NI is being paid to HMRC, often with no need for the individual to submit an annual self-assessment return to HMRC.
- Employee HR support. In the unlikely event that an individual needs HR advice, the umbrella company is able to give appropriate support.
For the agency or end client
A fully compliant umbrella company manages the commercial, employment, taxation, and statutory risks associated with the use of freelance workers. This minimises the overheads and administrative burden of managing freelance workers in-house.