What are the benefits of working through an umbrella company?

An umbrella company can offer greater freedom and tax-efficiency to consultants and contractors working in the public sector under IR35.

Although it is still possible to work through a limited company in the public sector, it is evident that the 'Off Payroll Working' rules are making this way of working extremely onerous for all concerned and that there are still a number of issues as yet unresolved by HMRC.

As a reaction to the rules, many workers have decided to leave the public sector altogether, but if this is where your experience lies, leaving the public sector could result in you having fewer options for work.

The payroll umbrella company model has been in existence for some time, but is becoming a more favoured option by all concerned in light of the new changes, as it is now the most straightforward solution to the problems created by the new legislation.

An umbrella company such as Competex Pro handles the commercial, employment, taxation, and statutory risks associated with the use of freelance workers. Indeed, senior independent professionals will find that they enjoy more freedom and independence from their client working through Competex Pro than they would working through a limited company.