The benefits of using an Umbrella Company

Which Umbrella

What are the benefits of using an Umbrella Company?


The benefits of using an Umbrella Company are explained by FCSA Accredited New Red Planet. When looking at what an Umbrella Company is and how it can benefit you – Being employed by an Umbrella company is something which offers a wealth of benefits to contractors. But, to understand the benefits, we must first understand what an Umbrella company is.

An Umbrella company undertakes the employment of temporary workers supplied by recruitment agencies. It pays the appropriate tax on behalf of the contractor, as well as sending them a payslip weekly or monthly, depending on how frequently they get paid. In essence, a recruitment agency finds work for a contractor, and an Umbrella company pays them.

Your Choices

You have many choices and Flexibility when using an Umbrella Company

Flexibility in using an Umbrella

Using an umbrella company is a great way to dip your toe in the water that is working as a contractor. You have the option to opt in and opt-out of self-employment, so you can try both and make your own decision on which you prefer.


Umbrella Companies can aid with finances

Protecting your Money

An Umbrella can protect your money and employment status

Contractors don’t want to spend unnecessary time nursing their own accounts. An Umbrella company manages the contractor’s tax payments so that there are no nasty surprises when the tax bill arrives. Due to the ever-expanding and confusing presence of IR35, being paid as a contractor through an Umbrella company


Employee Benefits when working through an Umbrella Company

When you work as an Umbrella contractor, you become an employee of the Umbrella company, thus you benefit from: sick pay; maternity/paternity pay; holiday pay. This is a huge added layer of security that a contractor wouldn’t get if they were self-employed.


Which way to go?

Safest Route to take when choosing your Umbrella Company

Safest route

As an added safety net to recruiters, contractors and end clients, the recommended type of payroll company would be one that is FCSA Accredited. The FCSA is seen as the industry standard for Compliance and Customer Service and as New Red Planet are FCSA Accredited, there is no need to search any further.



For more information on working through New Red Planet’s FCSA Accredited Umbrella payroll solution, please do contact us on the details below.

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