Umbrella Companies

An umbrella company provides the same legal structure as a personal limited company but removes the administrative burden normally associated with contracting by providing a ready made solution, available to a large number of unconnected contractors.

The umbrella company normally issues invoices on the contractor's behalf, collects payments from clients/agencies, calculates tax and NI contributions and pays the contractor their net pay direct to their personal bank account.

In order to be tax compliant, the contractor must be an employee of the umbrella company and have all remuneration paid out in the form of employment income. In practice the contractor is usually paid via a combination of salary, "bonus" and tax free expenses.

The umbrella is the most favoured option for contractors falling within IR35, those not expecting to be contracting in the longer term and those who want the "simplest life".

planIT Services provides accounting services to a number of contractor umbrella companies.

planIT Solutions is our own in-house umbrella solution, giving you a fast, efficient and friendly service which maximises your take home pay.

Setting up

It couldn't be easier - register online now or call 020 7118 1110 and we'll provide you with a personal financial illustration indicating your expected take home pay. Then...

• You will be sent a registration form for completion and an information pack
• We will set you up on our system and provide you with online log in details
• We sign a contract with your agency
• You enter into an employment contract with us

Ongoing

• You input your timesheet and  expenses, weekly, fortnightly or monthly
• We raise an invoice on your behalf to your agency
• On receipt of cleared funds, we initiate a transfer of funds into your personal bank account. Funds will therefore be received in your account 3 working days later. (If you opt in to our Faster Payment Service, funds are normally recieved the same day.)
• We advise you of payment by SMS
• Your payslip is posted to you.

What you get

With planIT Solutions, you get the following as standard.

• Same day set up
• Contract administration
• Online data entry
• Same day invoicing to your agency or client
• Payroll payment on day of receipt
• Comprehensive expense claim system
• £2m Professional Indemnity insurance cover
• £5m Public Liability insurance cover
• £10m Employers Liability insurance cover
• Unlimited contractor support
• Text message pay notifications
• Optional Faster Payment Service (FPS)
• No starting or closing costs
• Margin paid only when working
• Easy "set up" and "close down" procedure
• Statutory holiday, maternity and sick pay

You can continue to use the umbrella company when you change contract or restart after a period of not contracting, and if you want to switch from an umbrella to your own limited company at a later date, we will do this for you completely free of charge.

If you want to discuss an umbrella solution, simply complete our online enquiry form to get a no obligation take home pay calculation.

Our margin

From as little as £12 per week, our margin and our guarantees are transparent and can be seen here.

How umbrella companies work video