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An Umbrella company provides a ready made invoicing vehicle for contractors,  removing the administrative duties normally associated with contracting in the form of a Personal Service Company. The Umbrella Company normally enters into a contract with a client on behalf of the contractor.

It then typically issues invoices on the contractor's behalf, collects payments from clients, calculates tax and NI contributions and pays the contractor their net pay direct to their personal bank account.  You are generally allowed to claim valid business expenses (e.g. travel to work expenses) to reduce your tax and NI liabilities although some Umbrella Companies charge extra for this service. Additional benefits, such as discounts on financial products and free advice, are often included in the service.

Traditionally, Umbrella Companies were more expensive than running your own Personal Service Company, mainly because their charges included all the administration overheads, and they tended not to offer the same tax advantages. With the introduction of IR35 the tax disadvantages of Umbrella Companies have been reduced and a new breed of Internet based umbrella companies has emerged to offer greatly reduced running costs to the contractor.


Platinum Umbrella Limited is a premium umbrella company, which is owned and operated by group of Chartered Accountants. The company's distinguishing feature is it's high quality of service levels and attention to detail by it's highly qualified and professional directors and staff. If you are currently unhappy with the service you are receiving from your existing umbrella company or simply want to start your career working with a professional umbrella company, then visit www.platinumumbrella.co.uk or call them directly to discuss your specific circumstances on 020-8446-2000.

 
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