Umbrella company
From Wikipedia, the free encyclopedia
In the United Kingdom, an umbrella company is a company that contractors can use when working "freelance" or "self employed". Both recruitment agencies and direct clients usually require a legal form of trading to be used to ensure they are not exposed to tax and employment liabilities. In such cases the contractor can choose to set up their own limited company or to use an umbrella.
Umbrella companies have become more prominent since the British government introduced so-called "IR35" legislation that makes it less beneficial to start your own company and relatively more attractive to join an umbrella company.[citation needed]
See also: Portable Employer of Record
