Umbrella Companies for freelancers - Yay or Nay? It would be great to know opinions of both freelancers & companies employing freelancers.


  • @Pansy Aung Thanks so much for sharing your experience Pansy. I'm currently only into month 1 of freelancing, so I will see how things progress and will set a review date to consider my options before leaving it too long.
  • Hi Marie,
    Agreed with James's comments. Umbrella company is super easy and easy to set up but you should definitely consider setting up as Ltd if you're thinking of freelancing long term.
    I only set up my Ltd after 2 years of freelancing and my accountant told me I paid quite a lot more (5 dight!) more tax because of it!

    Employers have no problem with both as long as you're set up with either options.
  • Umbrella companies are easy enough to use when I have an inside IR35 contract or when i first started freelancing, but it’s expensive having to pay both employee and employer national insurance contributions.
    I’ve only experienced one umbrella company (Paystream) who have been pretty good for customer service and easy to use, but I generally try to avoid using an umbrella when possible, just because my take-home pay is less than being paid via my limited company.

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