Register Now

for a free relocation pack or a no obligation face-to-face tax consultation

Umbrella Company


An umbrella company offers an employment facility for contractors who don’t want the hassle of running their own limited company.

Our umbrella company removes you from the administration and hassle of running you own company. We do everything for you, from invoicing to payroll, leaving you with more time to do what you enjoy.You can relax in the knowledge that all your UK tax and legal obligations are being taken care of by us.


If you want to focus purely on what you do best as a contractor, and not spend you weekends poring over business accounts or filing tax returns, then our umbrella company is the solution for you.Our umbrella company acts as your employer, handling everything from invoicing to UK tax.



~ We handle all your invoicing, accounts, UK tax returns and business administration
~ You’ll be fully covered by our Personal Indemnity, Personal Liability and ER insurances
~ As an employee you won’t need to worry about IR35 or MSC (Managed Service Companies) legislation
~ Tax-deductible expenses are claimed on your behalf and offset against your income, so you maximise your take-home pay
~ You’ll have ongoing access to a dedicated account manager who’ll be able to address any concerns and answer all your queries


The Process

~ Signing up with our umbrella company takes less than an hour
~ If you’re already with an agency tell us who it is and we’ll manage your contract
~ You send us your timesheets and we raise an invoice for your agency on your behalf
~ On receipt of cleared funds we process your payroll and take care of all UK tax payments
~ Your payslip is issued to you


It’s simple – no accountancy hassle or tax concerns make it easier for you to leave your work at work

What is an Umbrella Company?

Umbrella companies occupy an important niche in the contracting side of the UK job market and staffing sector, providing a service that even a seasoned professional contractor would find of use. Using an umbrella is the main alternative to setting up your own limited company where you would be a named Director.


The main reason for working through an umbrella company is to serve as an intermediary between the contractor and their end client where they are performing their daily duties, with their principal responsibility being to organise payment for your work.


The main difference between operating via your own limited company and under an umbrella is your employment status. When operating your own limited company, you are a full Director of the business and can take advantage of a variety of methods for minimising your exposure to tax albeit with the the fact you take full responsibility for your financial affairs. When working via an umbrella, you are an employee and will therefore pay slightly more in PAYE and National Insurance contributions, although the bulk of the paperwork and back-office administration is carried out for you.


Working through an umbrella company is straightforward. Once the contract is agreed, you will be required to log your time using a timesheet, which will normally be countersigned by your client. This is then forwarded to the umbrella company (some will want the actual timesheet, while others may offer an online utility where you can upload the details) who will use it to invoice the client. Once the client has settled the invoice the umbrella company will forward payment to you, less their fees and any tax or NI due, usually along with a pay slip that gives full details of how your pay has been calculated.

Different umbrella companies have their own payment schedules – some will forward your funds as soon as they receive the funds from the client, while others pay out on a regular date, with either a weekly or monthly payroll. You should also be clear about the fees you will pay. Umbrella companies will normally deduct their fee (which can be a fixed amount or a percentage of earnings) before tax, which will reduce your tax liability, and it is important to choose one that can offer out of sync pay runs in the case of emergency. Be sure to confirm whether the fee includes all relevant insurances for you being onsite.

It’s easy to dismiss the use of an umbrella company as a half-hearted approach to contracting that sacrifices many significant advantages of an independent career and which represents an unnecessary bite out of your profits, however there are many benefits as well – one of the most important being that they will perform most of the administration for you leaving you with time to work on the projects, build up your skillset, CV and more importantly your reputation.


“Working through Transition has allowed me to retain a higher percentage of my income and with a more professional approach than my previous supplier, happy to recommend.”

Alastair, London (NZer)

Read More

UK Horror Stories

“London is great but I wound up on emergency tax without a bank account and I lost a great deal of money, when my friends were all high earners.”

Brian, London (Aust)

Read More

Latest offer: Rio Olympic Games 2016

Rio de Janeiro: T2UK ticket draw!

Enter the Draw

Follow us on Twitter, Facebook and LinkedIn for latest offers and competitions