Contractors

What are the disadvantages of Umbrella company?

Last updated
March 12, 2025

Contents

What are the disadvantages of Umbrella company?

The drawbacks to working through an umbrella company are:

  • You'll have less control compared to running your own company.
  • You may find it more tax efficient to operate through a limited company.
  • There are a number of umbrella companies operating illegal arrangements, so you'll need to exercise caution before signing a contract.

The drawbacks to working through an umbrella company are:

  • You’ll have less control compared to running your own company.
  • You may find it more tax efficient to operate through a limited company.
  • There are a number of umbrella companies operating illegal arrangements, so you’ll need to exercise caution before signing a contract.

Disadvantages of umbrella company
Umbrella company accountants
Speak to a Contractor accountant

Book a free contractor accountant consultation to talk through umbrella company disadvantages.

Umbrella Company Guide
Free download
Umbrella Company Guide

Our Umbrella company guides gives a detailed overview of what umbrella companies are, when you may need one, how they work and the pros and cons of umbrella companies.

Email address:

Thank you for downloading our free guide. We've sent you an email with your guide!
Oops! Something went wrong while submitting the form.
GoForma umbrella can take care of your weekly payslips from £27 per payslip
Get an instant quote
Umbrella company accountants
Contractor Calculator - Outside IR35
CalculatorsContractor Calculator - Outside IR35

This Outside IR35 Calculator for contractors estimates take home pay for contracts Outside IR35.

Calculate now

Explore more of our contractor accounting guides

Umbrella company accountantsDisadvantages of umbrella company
Speak to a Contractor accountant

Book a free contractor accountant consultation to talk through umbrella company disadvantages.