Umbrella company guides
Everything UK contractors need to understand umbrella companies — how PAYE through an umbrella actually works, what deductions are legitimate vs dodgy, how to calculate real take-home pay, and when it's time to leave for a limited company.
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Frequently asked questions
Is an umbrella company better than a limited company?
For inside-IR35 contracts or if you only plan to contract for a few months, umbrella is usually simpler. For outside-IR35 contracts paying more than roughly £30k, a limited company almost always nets you more take-home — often £4,000–£8,000/year more on a £500/day contract.
What's a reasonable umbrella company margin?
Most legitimate umbrella companies charge a fixed weekly or monthly margin — typically £15–£30/week. Be wary of umbrellas quoting percentages, offering "90%+ take-home", or bundling loan schemes — those are the red flags HMRC is actively chasing down.
Thinking about leaving umbrella?
Book a free 20-minute consultation. We'll model your real take-home under umbrella vs Ltd and tell you honestly which makes sense for your next contract.