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An umbrella company can provide a contract worker with many benefits, not least of all, a simpler way of paying your taxes. You essentially become an employee of the umbrella and get paid on a PAYE basis. All of you tax and national insurance calculations are collected at source, just like a conventional employer. In fact, umbrella employment is much the same as conventional “permanent” employment.
You are also entitled to all of the rights and benefits of a permanent employee, whilst having the ability to fastrack your career by taking on more senior roles faster than might otherwise be the case. Another option is that you become the director of your own limited company, a route that might be great for some, but the increasing impact of tax reforms (chiefly IR35) mean the benefits of using your own limited company are restricted to fewer and fewer contract workers.
For an insight into which route might best suit your career plan, get in touch.