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An Umbrella could be the solution for you if you find yourself contracting in the public sector.

What are Umbrellas used for?


Find out how Umbrellas can be useful for contractors.


What is an Umbrella?
Umbrellas are entities designed to employ temporary workers. For a weekly fee an Umbrella processes timesheets, collects and pays over the fees from the agency, and calculates taxes due on behalf of each worker. They also provide employment rights and will process expenses for those who are eligible to claim them.

How does an Umbrella work?
As an Umbrella worker all your income is taxed as employment income and therefore IR35 cannot apply. Some workers use Umbrellas to remove uncertainty about IR35 and some prefer the simplicity of an Umbrella to running their own business.

An attractive solution for end hirers and agencies too
End hirers and agencies want to focus on their business so they prefer to outsource the management and payment of their workforce, as well as keeping distance between employment risks and themselves. Umbrellas are happy to help.

Changes to tax
Recent changes in 2016 removed the ability for many Umbrella workers to claim tax relief for Travelling and Subsistence where they were under the Supervision, Direction or Control of the client. This removed much of the financial benefit of working via an Umbrella using an “overarching contract of employment” to create temporary workplaces. 

Know what you owe with an Umbrella
Umbrellas provide an element of certainty about what tax a contractor has to pay, which is very important in times of change. The recent changes to IR35 and the responsibility for making the assessment of status in the public sector has made many clients and agencies fearful of getting compliance wrong. This may lead some to refuse to let their temporary workers operate through a PSC and force them into either permanent employment or Umbrella solutions.

When is an Umbrella better for the worker?


One of the most common questions at the moment - learn more about why you might go Umbrella rather than Limited.


  • Umbrellas suit those who want as little administration as possible whilst working with some flexibility.
  • They have some tax benefits surrounding expenses but only in certain circumstances.
  • Umbrella working is ideal for temporary workers who only intend to work as such for short periods of time, either on a casual basis or between periods of permanent employment.
  • Greater earning power compared to permanent positions.
  • Most Umbrellas provide employment rights including auto-enrolment in a pension scheme and holiday pay (even if this has a cost) which is better than arrangements that do not give the worker employment rights.

Why choose Intouch Umbrella?


Now you understand why you might go Umbrella, why choose us?


If you have been working through your PSC and using the expertise of Intouch Accounting you will already know the answer to that question. High quality personal service with expert advice at your fingertips is what you will be used to.

Intouch Umbrella just carries those skills and expertise into the Umbrella market. Using FreeFlex for an extra £20+VAT per month lets you move between the comfort and dependability of your Umbrella solution and the full freedom of your Personal Service Company without disruption.

Experienced PSC contractors working for a public sector body (“PSB”) after March 2017 will have uncertainty over how the market will adjust for the changes.

Will the PSB even deal with Limited Company contractors? If they do will they properly assess your IR35 status? Which way of working gives me the best contract rate? What gives me the best take home pay? FreeFlex is the best way to remain unconcerned about these matters because we can offer you both and allow you to change from one to the other seamlessly.

Enjoy the best of both worlds with FreeFlex. Intouch’s Umbrella and PSC solution made as simple as can be, with FreeFlex only costing an extra £20+VAT per month.