What will an umbrella company do to you as a contractor?

Umbrella companies are flourishing and are offering a hassle-free opportunity for contractors to make money. Everyone keen on making money is now taking the leap and have no regrets from the proceeds.

Umbrella company services

Signing job contracts on your behalf

You will go out and find a job, hammer a few details and have the deal ready to go. Your umbrella comes in here. It is their responsibility to sign the final agreement on your behalf. Before the signing, the company will go through every aspect and make sure you are getting the most out of it.


Here the company will serve as your employer and leave you to concentrate on the work at hand. You are also expected to sign another agreement with your umbrella company. Now, this is what will directly affect your pay and other terms of engagement.

Invoice the agent on your behalf

Your only task is to get the job done. The umbrella company will iron out your payment details. It starts by invoicing the agent and alert them on existing dues. This one prompts the agent to start making arrangements for your payment.

Prepare your payroll

What the agent pays will pass through your umbrella company. It will be its duty to prepare your payroll in readiness for your final pay. This payroll will reflect on your claimed expenses and will also include the legal deductions. A breakdown will also be sent to you for the sake of accountability.

Paying you

The most important role that an umbrella company does for you is propagating your payment. It does the entire break down including all deductions and giving you the final pay. This will be inclusive of your claimed expenses and any other benefits you are entitled to.

Back-office administration and paperwork

As much as you will be independent on how you work, a big chunk of your day to day administration will take the duty of the umbrella company. Yours is only to execute all your projects and get ready for a check as per your agreement. All the bulk of administration is all taken care of. In a nutshell, you are operating as an employee yet at the same time you own a company.


Assist you finding jobs

When you decide to get into an umbrella company arrangement, you will be finding your way into their established network. The company has a duty to you; they will help you get clients. Your interests and those of the umbrella company are aligned since when you make money, they mutually benefit from that.

For those who are wondering what an umbrella company can do for them; you have it now. There is so much you can get from this arrangement; one being employed and getting your timely pay. The hassle-free aspect is what has attracted quite some contractors to go for umbrella company arrangements.