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Freelance Advice (Umbrella)
Hi there,
I'm a sole trader which is where I make all my income. I have been offered 2 days work through an agent and to do so I have to sign up to an umbrella company. Here's my question.. Does this make the umbrella my main employer and being a sole trader secondary? And if so how does this effect my tax free allowance, since I would only be making a tiny amount (one job) through the umbrella?
The umbrella company seem like a bunch of robots not knowing how to give any answers on this.
I'm a sole trader which is where I make all my income. I have been offered 2 days work through an agent and to do so I have to sign up to an umbrella company. Here's my question.. Does this make the umbrella my main employer and being a sole trader secondary? And if so how does this effect my tax free allowance, since I would only be making a tiny amount (one job) through the umbrella?
The umbrella company seem like a bunch of robots not knowing how to give any answers on this.
- Hi Killamangiro,
I work for Foremans LLP and we run an Umbrella Company called Foremans UK.
The umbrella company does in fact act as your main employer, meaning they have to deduct NIC and PAYE tax from you and pay it over to the tax man. It is essentially the same as working as a PAYE employee (although you will usually make more money through an Umbrella company). It will affect your tax free allowance the same as if you were an employee of your end client's company.
I hope I've answered your question!
Charlotte Wright - Killamangiro,
A version ofyour question was answered by an expert on the FreelanceUK front-page!
https://www.free-work.com/en-gb/tech-it/blog/freelancer-news
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