Why use our umbrella services?

Umbrella Services

An umbrella service can be a good choice for contractors that do not intend to contract for very long, for example are between permanent assignments, or those that earn lower daily amounts, or simply don’t want to deal with having a limited company.

Pay Friday is a high-quality umbrella employment service for agencies and individuals that value first-rate customer service, total transparency, peace of mind in relation to compliance and a low weekly fee.

There are a lot of umbrella companies out there, from the good to the very bad, some of whom promise the earth in terms of take home pay. Rather than bombard you with a whole raft of features or internal workings of our service that are frankly irrelevant to you as a contractor or agency, we have distilled our introduction to the things that we believe really matter to you as the customer and will affect your professional life.

Email us with your contact details or phone us now on 0845 272 4009 for more details.

Benefits for Contractors

Reliability, clarity, impartial advice, personal service and value for money. Let us take care of everything for you

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Benefits for Agencies

Reliability, experience, compliance and great personal service. We take away all the hassle from you and from your clients

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What is an umbrella company?

An umbrella company is a company that becomes your employer and you pay tax on your salary under PAYE, just as you would if you were an employee of any other company. Tax and NIC is deducted from your payments before you receive them, so there is no need to submit self assessment tax returns.

Advantages of working under an umbrella company

The key advantage that contractors find from working under an umbrella company is that the administration is easy. There are no tax returns to submit, no paperwork has to be filed with Companies House and the umbrella company deals with chasing up any unpaid invoices with your clients. This means that you have more time to focus on working and so can potentially earn more money. Working under an umbrella company also means that you as a contractor are not affected by IR35.

It suits those contractors on short-term assignments, on assignments caught under IR35 tax legislation and contractors on pay levels below £20 per hour.

Disadvantages of working under an umbrella company

There is one major disadvantage of working under an umbrella company and that is that the tax and NIC regime is less flexible. You don’t have the chance to reduce tax and NIC to a significant degree. If your contract falls outside IR35 and your rate is high enough to make it worthwhile and you think you will be making a living as a contractor longer term then you should speak to us about incorporating a limited company instead.