MT Week - Can you benefit from an umbrella company?
Umbrella companies are often mentioned in the context of self employed workers like freelancers and contractors, but what they actually do and how they work is often a bit of a mystery to the uninitiated.
Part of the confusion comes down to the fact that there is no legal definition for these types of companies, so how they operate can and do vary.
Even HMRC’s definition of these entities is a bit loose:
“It is generally agreed that an umbrella company is a company that employs a temporary worker (an agency worker or contractor), often on behalf of an employment agency. The agency will then provide the services of the worker to their clients.”
With this in mind, I spoke to Joanne Harris from Optionis, which counts an umbrella company as part of its business, about when this arrangement might suit you.