Using an Umbrella Company

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Why do I need an umbrella company?

An umbrella company is a separate company that acts as an employer for contractors working on fixed term contracts, and manages payment for the contractor. In a nutshell, we take the hassle out of being a contractor when it comes down to finances. Umbrella companies collect the contractor’s earnings from the end client or agency and then pay it onto the contractor with tax, National Insurance contribution and their own fee deducted. Easy.

Working under an umbrella company, like Kontractor Connect, often makes life simpler for contractors, as everything is taken care of for you.

  • all tax and national insurance is automatically deducted so there is no need to worry about tax returns or year-end accounts

  • faster payments

  • access to entitlements like holiday pay, sick pay and maternity / paternity pay

  • consistent employment record (handy for mortgage and loan applications)

  • automatic enrolment into a pension scheme

We take care of the finances, leaving you to do what you do best.

“My contracts change on a monthly basis, so placing my finances under an umbrella company gives me the financial security I need. I know I will be paid on time and at the correct rate - a hassle free and straightforward solution which today is very much welcomed.”
— Brian Henderson