How An Umbrella Company Works
Why work through an umbrella company?
If you are in the private sector, it is recommended to work through a limited company. You can find out more about our limited company formation and accounting services on our accountancy pages.
It is possible, and recommended, to use a limited company for private sector contracts while also working through an umbrella company for public sector contracts. Competex can handle your tax & compliance across both trading formats.
What is an umbrella company?
An umbrella company differs from a limited company in that the freelance worker does not own shares in the umbrella company and is one of many such workers employed by the company.
How does Competex Umbrella work?
You negotiate the terms of your contract with the end-client or agency on behalf of CUL, but the resulting contract is between CUL and the end-client or agency. Having negotiated your fee and any arrangement for expenses, you need to advise CUL so that this detail can be incorporated into the contract with the end-client or agency and into your salary payment structure.
At the end of the month (or other agreed period) you need to complete a time sheet setting out the days (or hours) worked and any expenses due, and arrange for this to be signed off by the end- client. The end-client or agency pays CUL, and CUL pays you two working days after receipt of funds from the end-client or agency.
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