What is an umbrella company? Compliance and take-home pay

Best for inside IR35 roles

Best for outside IR35 roles

Suitable for short-term or lower-rate contracts

Often more tax-efficient for higher day rates and longer-term contracts (particularly where outside IR35 applies)

Minimal admin

Requires company setup and ongoing filings

PAYE is handled for you

You’re responsible for managing tax, accounts, and compliance

Includes statutory employment rights

No employment rights as a company director

Simple, low-maintenance structure for easy compliance

Greater control and flexibility