123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

What Are Umbrella Companies?

Profile Picture
By Author: Salvatore Andrea
Total Articles: 6261
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

An umbrella company is an employer to the employees that work under a fixed contract period. These companies get the employees essentially through the recruitment agencies. What the recruitment agencies would do is, they issue contracts to the limited companies. In this way their liability is minimized. The umbrella companies prepare and furnish the invoices to the recruitment agencies, who are happened to be their clients. When the invoice is paid out for the umbrella companies, they in return pay the contract employees. This is how the system of the umbrella companies function. This system gained popularity in the UK since the introduction of the IR35 legislation. The same system is being introduced in France as well.

Let us have a look at the structure of an umbrella company. These companies work on and process the timesheets that they receive from the contractors and employees. After receiving the same, they process the invoice and send it to the clients for the payment. They also provide the payroll service to their clients on behalf of the contractors. As mentioned ...
... earlier, the companies for which the contractors work are the clients. This can be seen in the same company o across different levels. The agency works for their clients in recruiting the contractors.

The job of the contractor is to complete his/her job, fill timesheet and present it to the umbrella company along with any extra expenses that were incurred. These companies generally use PAYE system to calculate taxes on the income of the contractors. The sole difference here is that the umbrella companies charge a fee from their customers for the level of service that they offer. The fee that they charge is small and this is for processing the payroll of the contractors.

Total Views: 164Word Count: 295See All articles From Author

Add Comment

Business Articles

1. Biaxially Oriented Polyethylene Terephthalate (bopet) Film Market Is Expected To Reach $38.5 Billion By 2028
Author: Lucintel LLC

2. The Global Battery Sensor Market Is Expected To Grow At A Cagr Of 11% By 2025
Author: Lucintel LLC

3. What Is The Role Of Artificial Intelligence In Industry Automation?
Author: Invensys

4. What Is The Most Important Part To Start A Service Base Business?
Author: Subho Chowdhry

5. What Are The Expectations Of Business Owners While Creating A Website?
Author: Subho Chowdhry

6. Difference Between Butterfly Valve And Ball Valve
Author: Dchel Valves

7. Tips To Improving Business Through Successful Sap Integrated Business Planning (ibp) Services In Ger
Author: Priyanka Verma

8. Explore All About Knuckle Joint Presses
Author: Sharma Presses

9. Learn About Several Types Of Round Bars
Author: Nippon Alloys Inc

10. Ultimate Guide To Devops 2023 For Your Business
Author: William Davis

11. Frp Pipe Properties And Advantages
Author: frp grp

12. The Global Crankshaft Position Sensor Market Is Expected To Grow At A Cagr Of 8% By 2025
Author: Lucintel LLC

13. Metal Manufacturing And Furnaces
Author: Neel Rao

14. The Power Of Kalsarp Dosh Puja At Trimbakeshwar: A Gateway To Overcoming Obstacles
Author: Raviguruji8888

15. Manufacturers And Distributors Of Numerous Types Of Valves
Author: ridhiman alloys

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: