IR35 – are you confused about which Umbrella company to use?

Why do I need an Umbrella Company and what does this mean?

Umbrella companies will be your new Employer if your contract is inside IR35 and the role is not moving to a direct PAYE role.

In short this means, the Umbrella Company will receive your day rate, deduct employment costs and pay your net salary. The make up of employment costs can vary and it is important to get an illustration (we can give you one).

Which Umbrella Company should I choose?

Many agencies will have issued lists of umbrella companies or a choice of 3 “preferred” suppliers. But it is important to understand that:

  1. ALL compliant Umbrellas will offer around the same take home pay, depending on their fees. Anything that promises to increase your take home above the rest is a scam.
  2. There are two accreditation providers in the market – Professional Passport (the oldest and insurance backed) and FCSA. They both provide assurance that the umbrella is compliant and you should look out for your umbrella being approved by one of these.
  3. It is up to YOU who you chose to go with. Your agency shouldn’t prevent you from choosing who you want to be employed by, especially if you have an existing relationship. If you move roles and agencies regularly, you could end up with 3-4 employers a year and this could affect your chances of obtaining credit as a temporary worker.

Kontractor Connect

KPP has set up a sister organisation, Kontractor Connect, which provides first-class Umbrella services for contractors, freelancers, temps and self-employed CIS workers, managing your payment solutions and making life simpler for you.

Kontractor Connect is a member of Professional Passport and Regulated by The Institute of Chartered Accountants of Scotland, meaning you can be assured you will be in good hands.

If you require any further information, or are facing difficulty in choosing with your agency, please call us or pass on their details and we will be happy to call them directly.

What our clients say...

“Since joining it has been nothing but a first class service. I am in no doubt that all of my financial dealings are being dealt with in a professional manor, and I have total trust in the work being carried out for me. I have recommended KPPCA Contractors to a number of my colleagues as a result of the service I receive from them.”


Jade Chalmers, J Chalmers Financial Ltd