10 Best Umbrella Companies UK

Umbrella companies serve as employers for independent contractors, managing payroll, tax, and compliance. Umbrella company contractors receive payment through the company’s payroll, with deductions for income tax and national insurance contributions. They also provide employee benefits like holiday pay sick pay, paternity pay, and maternity pay. This ensures smooth processing of payments and compliance with HMRC regulations.

An umbrella company acts as a middleman between contractors and end clients, eliminating the need for a limited company. It provides tax relief, employee benefits, and handles invoicing on behalf of contractors. Contractor becomes employee of the umbrella company.

Contractors submit their timesheets to the umbrella company, which invoices the client for their work. The company then pays the contractors, deducting taxes and handling national insurance contributions. Contractors receive pay slips from the umbrella company.

When considering umbrella companies, it's important to compare tax compliance, reputation, and customer service. The top umbrella companies in the UK offer various services with different umbrella company fees. Contractors and freelancers must compare the benefits and drawbacks before making the final decision.

1. Parasol Group

2. PayStream

3. Workwell

4. Giant group

5. Umbrella.co.uk

6. SG Umbrella

7. Brookson One

8. Sapphire

9. Danbro

10. Fore:Two Umbrella

1. Parasol Group

• £29.75 weekly fee
• FCSA accredited – fully compliant umbrella company
• Worked with 100000 contractors and 3000 recruitment agencies
• £20m insurance cover
• No hidden costs
• Same day faster payments
• Dedicated support team
• Work place pension via NEST
• Employee benefits - maternity and paternity pay, sick pay, paid annual leave
• Live chat available
• Contact number: 01925 645 265
• 4500+ Trustpilot reviews - 4.7 stars

2. PayStream

• £27 weekly fee
• FCSA accredited umbrella company
• APSCo trusted partner
• Dedicated Relationship Manager
• Sick pay and paternity/maternity pay
• Holiday pay and workplace pension
• £20m insurance cover
• Tax relief on allowable expenses
• Voted the UK's Best Umbrella Company
• Contact number: 0161 923 0201
• 3000+ Trustpilot reviews - 4.8 stars

3. Workwell

• Accredited by the FCSA
• Simple set-up - register and begin working within minutes
• 24/7 personal accident insurance up to £500 per week
• Easily switch between umbrella and your own limited company, depending on your IR35 status
• pension scheme, holiday pay, sick pay, and maternity/paternity and adoption leave
• public liability, employers’ liability, and professional indemnity insurance
• IR35 Advice
• Real-time payment notifications
• Contact number: 01923 257 257
• 2400+ Trustpilot reviews - 4.7 stars

4. Giant group

• Weekly margin from £22
• FCSA accredited
• APSCo trusted partner
• Payment text alerts
• Same day faster payments
• Daily payrolls
• 24/7 access to a mobile 1st portal
• Auto enrolment pension
• holiday, sick, maternity & paternity leaves
• £30 million insurance package
• Contact number: 0330 024 0946
• 1800+ Trustpilot reviews - 4.8 stars

5. Umbrella.co.uk

• FCSA accredited
• APSCo trusted partner
• Served over 100,000 contractors
• Easy registration in minutes
• 24/7 online portal and mobile app
• No joining and leaving costs, or other hidden fees
• Claim tax relief on mileage expenses
• Workplace pension or salary sacrifice
• SMS notification of payment
• Live chat available
• Contact number: 01625 546 610
• 900+ Trustpilot reviews - 4.7 stars

6. SG Umbrella

• FCSA Accredited – highest standards of compliance
• advice on IR35 and tax
• Direct line to named contact
• Fixed margin, no minimum contract
• No hidden costs - everything included, even pensions
• no joining or exit fees
• Half price for the first 3 months
• Holiday Pay, Sick Pay, Maternity Pay and Paternity Pay
• Contact number: 01962 896954
• 100+ Trustpilot reviews - 4.9 stars

7. Brookson One

• Founding members of the FCSA
• Setup in as little as 24 hours
• Comprehensive insurance package
• Support 6 days a week
• Same-day payments along with SMS notifications
• No hidden set up costs or exit fees
• Sick pay, holiday pay, workplace pension and maternity leave
• Flex solution to switch easily between Limited and Umbrella
• Claim tax relief on allowable expenses subject to SDC tests
• Contact number: 0800 230 0213
• 2400+ Trustpilot reviews - 4.6 stars

8. Sapphire

• Fully FCSA accredited umbrella company
• sick pay and maternity/paternity pay
• £25m insurance cover
• same day payments
• 24/7 online portal to submit timesheets
• claim expenses
• 24/7 private online GP service
• access to qualified councillors to support mental health and wellbeing
• Contact number: 01625 539997
• 2800+ Trustpilot reviews - 4.9 stars

9. Danbro

• £28/Weekly margin fees deducted from your gross pay
• Same day payments
• Trusted by over 7,500 contractors
• Private medical care*
• Reimbursed expenses
• Danbro Rewards
• Holiday pay, sick pay & maternity/paternity pay
• The Danbro Group SIPP Pension Scheme
• BUPA Cash plan
• Public Liability, Professional Indemnity & Employers’ Liability Insurance
• Online portal & timesheet submissions
• Dedicated employee support team
• No set-up costs, no exit costs, no tie-in period
• Contact number: 01253 600 140
• 600+ Trustpilot reviews - 4.5 stars

10. Fore:Two Umbrella

• FCFA accredited
• £35M insurance cover including the option for personal accident cover
• Statutory payments such as SSP, Maternity & Paternity Pay
• offset legitimate business expenses
• Get paid on time
• Salary Sacrifice Pension
• holiday pay - how and when you want it
• Contact number: 0808 196 9601
• 600+ Trustpilot reviews - 4.8 stars

Using an umbrella company offers several significant benefits for contractors. These advantages can make your contracting experience smoother and more profitable. Here are some of the key umbrella company benefits:

1. Hassle-Free Administration

Umbrella companies handle all administrative tasks, including invoicing and expense tracking, so you can focus on your work.

2. Tax Compliance

They ensure you comply with all tax laws by managing your tax filings and National Insurance contributions, helping you avoid penalties.

3. Reliable Income

You receive a consistent salary based on your contract earnings, providing financial stability regardless of client payment schedules.

4. Avoid Being Caught by IR35

As an umbrella employee, you don’t need to worry about being inside or outside IR35. You become an employee of the umbrella company, which simplifies your taxation and removes any confusion about your IR35 status.

Importance of Choosing the Best Umbrella Company UK

Choosing the appropriate umbrella company ensures adherence to UK tax laws and affects the contractor's take-home pay and benefits. It also provides transparency, trust, and personalized solutions, while preventing tax avoidance schemes. The right choice can make a significant difference in a contractor's financial responsibilities and benefits. When choosing an umbrella company, consider their experience and background checks. Check insurance cover, including public liability. Ensure compliance with FCSA and professional passport accreditation.

Read more tips on comparing umbrella companies to find the best fit for your contracting needs.

Umbrella Companies Feature Comparison

1. Research and Shortlist: Identify and shortlist umbrella companies based on initial research and above list of umbrella companies.
2. Compare Rates and Services: Evaluate the shortlisted companies, comparing their rates and services.
3. Request KID (Key Information Document): Request a Key Information Document (KID) from each umbrella company for detailed insights.
4. Read Reviews and Seek Feedback: Explore reviews of the umbrella companies and seek feedback from friends, colleagues, and recruiters.
5. Thoroughly Review Terms and Conditions: Review the terms and conditions of the chosen umbrella company thoroughly.
6. Complete Paperwork: Fulfill the necessary paperwork, including contracts and service agreements.
7. Inform Recruitment Agency or End-Client: Notify your recruitment agency or end-client about your finalized choice of umbrella company.
8. Submit Necessary Documents: Submit all required documents to the chosen umbrella company for the registration process.

How can You Find Umbrella Company Reviews?

To find umbrella company reviews, consider checking platforms like Trustpilot and Google. These platforms host user-generated feedback, providing insights into the experiences of individuals who have utilized umbrella company services. Browse through the reviews, positive aspects, and potential concerns to make an informed decision.

Below listed are FCSA accredited umbrella companies that have been tested for compliance with the FCSA Codes. Explore the whole list of all FCSA accredited firms for more details.

• Advance
• Amaze
• Azebra
• Black Diamond
• Bright Sky Contracting
• Brookson One
• Carrington
• Champion Contractors
• Churchill Knight Umbrella
• Clarity
• Clipper Contracting Group
• Contractor Umbrella
• Crest Plus
• CWC Solutions
• Danbro
• Dasa Umbrella
• DNS
• Eden Group
• Exact Payroll
• Exchequer Solutions
• Fair Pay Services
• Focused
• Fore Two Group
• Generate
• Giant
• Global Challenge
• Granite BPO
• Husp
• iConsult
• ICS
• Key
• Liquid Friday
• Mango Pay
• Mortimer Childe
• My Pay
• Nasa
• No Worries
• NumberMill
• NWM
• Oasis Umbrella
• Orange Genie
• Orbital
• Parasol
• PayMe
• Payments Pro
• Paystream
• Pendragon Consultancy
• Sapphire
• SD Payroll Services
• SG Umbrella
• Smartwork
• SSC Services
• Sterling
• The Indigo Group
• Trafalgar
• Umbrella Company UK
• Umbrella.co.uk
• Umbrellaphant
• We Contract
• Workr
• Workwell

List of Professional Passport Approved Umbrella Companies

Professional Passport acts as a self-regulatory body, doing an outstanding job in promoting compliance among temporary worker supply chains. It conducts audits for contractor service providers. Check this list of professional passport approved umbrella companies to know more.

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Choosing the right umbrella company is important for your success as a contractor. With the market flooded with unlimited options, it is essential to consider factors such as reputation, compliance, customer service, and fees while making a decision.

Above listed each of the top 10 umbrella companies UK brings its unique strengths to the table. Whether you prioritize competitive rates, personalized support, or advanced technology platforms, there is an option for everyone. Think about what matters most to you. Do you prioritize saving on fees, or do you value having strong support when you need it? Analysing your individual needs will help you make an informed choice.

We encourage you to take the time to compare the options among the top umbrella companies listed. This research can help you find a partner that aligns with your contracting goals. Additionally, consider seeking advice from contractor accountants. They can provide valuable insights and guidance, ensuring you make the best decision for your contracting journey.