The umbrella company payroll option is similar both to agency PAYE and permanent employee, but has a few key differences. How does an umbrella company work? It’s easy to understand and even easier to use.
An umbrella company is a way of getting paid when you work as a contractor or freelancer. It will act as your ‘employer’ for tax and National Insurance (NI) purposes. Whether you work through a recruitment agency or directly with your end-client, you can use an umbrella company to process your payroll.