Your Trusted Partner for Umbrella Company Support
Expert Legal and Regulatory Support for Umbrella Companies
Complying with the complex legal and regulatory measures that impact umbrella companies requires an in-depth understanding of tax, VAT and employment law. Chartergates is here to guide you through the compliance challenges and the evolving legal landscape in the labour supply sector. Errors in this field can lead to significant liabilities, and we are here to help you manage the intricacies of legal and regulatory requirements.
Practical, Experienced Advice You Can Rely On
Our advice is grounded in years of practical experience advising the umbrella company sector. Rather than just rely on textbook advice, we provide pragmatic and commercially sound guidance based on our extensive experience advocating for clients in contentious disputes. Our approach is tailored to address the specific challenges faced by umbrella companies, emphasising practicality, accuracy and reliability.
Supporting a Wide Range of Engagement Models
Umbrella companies can engage with individuals in a variety of ways. Whether you engage employees, self-employed subcontractors, limited company contractors, or offer accountancy services to limited companies, our legal specialists are ready to assist.
Comprehensive Expertise Across Tax, VAT, and Employment Law
Chartergates cover the full range of relevant tax, VAT and employment law areas, including the MSC legislation, IR35, employment status, ‘worker’ status, NMW, the AWR, the intermediaries legislation, the expenses rules, and CIS. Additionally, our expertise extends to regulatory matters such as the SIA, CITB Levy, GLAA licensing, and immigration regulations. Our comprehensive understanding and knowledge ensures that we can address the diverse needs of your business.
Demonstrate to your clients that you prioritise compliance and can protect them from tax and employment law pitfalls. Chartergates helps instil confidence in your business’ compliance, offering a practical approach ensuring that compliance becomes a seamless and commercial advantage to your business. Choose us as your trusted partner in complying with the complexities of the legal and regulatory requirements faced by umbrella companies.
Our Services & How We Provide Them
Our combination of sector specific expertise and complete advisory, drafting and representation services mean we are an essential service for umbrella companies. From one off advice to a full retained service, we offer:
- Bespoke tax, VAT & employment law advice and drafting
- HMRC dispute representation, including PAYE/ NIC enquiries
- Tax Tribunal representation
- Employment Tribunal representation
- Regulatory representation, including CITB enquiries
- VAT HMRC dispute representation
- Umbrella Company Start-up packs and advice
View our other specialist sectors
Frequently Asked Questions
1. What is an umbrella company and how does it work?
An umbrella company acts as the legal employer for temporary workers who find assignments through a recruitment agency or directly with clients. When you work through an umbrella, the company handles your payroll, deducts tax and national insurance contributions, and ensures you’re paying the correct amount to HMRC. You become an employee of the umbrella, gaining access to holiday pay, statutory sick pay, and other employee benefits.
2. What’s the difference between a limited company and an umbrella structure?
A limited company is a separate legal entity that you manage yourself. This means you’re responsible for your own tax affairs, compliance, and financial reporting. With an umbrella setup, you are employed under a contract of employment and all payroll, tax, and compliance obligations are taken care of for you. It’s often the preferred route for contractors working inside IR35 or those who want to avoid administrative burdens.
3. How do I pay the umbrella provider?
When you pay the umbrella company, you usually send in your timesheets or invoices. They receive payment from your agency or end client, deduct income tax, national insurance, and their service fee, and then transfer your take-home pay (or home pay) directly to your bank account.
4. Is working through an umbrella legal and compliant?
Yes. However, you should always choose a compliant umbrella company that follows UK employment law and tax regulations. Avoid any providers that promote tax avoidance schemes, as these can lead to serious HMRC penalties. A reputable firm will be transparent, meet all legal requirements, and issue proper employment contracts.
5. What are the main benefits of becoming an umbrella employee?
As an employee, you gain access to rights and protections similar to those in permanent employment — such as holiday pay, pension contributions, and statutory leave. Your contract of employment ensures you’re covered by workplace protections while still enjoying the flexibility of contract work.
6. How does salary sacrifice work under this model?
Some providers offer salary sacrifice options, allowing you to exchange part of your salary for non-cash benefits, such as pension contributions. This can reduce your tax and national insurance contributions, potentially increasing your take-home pay. Always confirm the arrangement complies with legal requirements before opting in.
7. What should I consider when choosing a provider?
When choosing an umbrella company, check that it:
- Provides a clear contract of employment
- Issues transparent payslips
- Is properly registered with HMRC
- Has strong compliance and legal backing
- Does not engage in tax avoidance schemes
Working with a trusted, compliant umbrella ensures your tax affairs are handled correctly and your rights are protected.
8. Will my tax and national insurance be managed for me?
Yes. One of the main advantages of this setup is that all tax and national insurance contributions are handled on your behalf. This simplifies your tax affairs and ensures you’re paying the correct amount to HMRC every pay cycle.
9. Can these services also support limited companies?
Yes. Many firms, including Chartergates, also advise and assist limited companies with VAT, PAYE, and employment law matters. This ensures full compliance across your operations, whether you run your own business or contract through an umbrella.
10. Why choose Chartergates as your trusted partner?
Chartergates provides expert support across tax, VAT, employment law, and regulatory matters. Our specialists help clients stay compliant, avoid tax avoidance schemes, and navigate complex legislation. We are your trusted partner for umbrella company support, offering clarity, reliability, and practical guidance in every aspect of compliance.
Disclaimer: Chartergate Legal Services Ltd has drafted these FAQs to provide a general overview of the relevant law only. These FAQs are not a substitute for professional advice that is specific to your circumstances and should not be relied upon as such.
