What are the disadvantages of Umbrella company?

Last updated
June 12, 2025
What are the disadvantages of Umbrella company?

The drawbacks to working through an umbrella company are:

  • You'll have less control compared to running your own company.
  • You may find it more tax efficient to operate through a limited company.
  • There are a number of umbrella companies operating illegal arrangements, so you'll need to exercise caution before signing a contract.

The drawbacks to working through an umbrella company are:

  • You’ll have less control compared to running your own company.
  • You may find it more tax efficient to operate through a limited company.
  • There are a number of umbrella companies operating illegal arrangements, so you’ll need to exercise caution before signing a contract.