FAQs

An umbrella company is set up in exactly the same way as any other limited company. The key difference is that the umbrella company will generally be owned by an Accounting Business and will employ many freelancers through this one company. Most umbrella companies will have thousands of freelancers working through the business.

Umbrella companies have traditionally been used by freelancers who are either on very low rates or on short term contracts. In these instances it is generally not worth the effort to set up a limited company and so the freelancer would use an umbrella company. Lately, with the implementation of the new ‘Public Sector’ rules and pending ‘Private Sector’ rules, freelancers will now be open to using an umbrella company irrespective of their rate of pay or length of contract.

The key difference between using an umbrella company as opposed to a limited company is that the freelancer becomes an employee of the umbrella company. So it is the umbrella company who signs the agreement with your agency and in turn you sign an employment contract for the length of your contract with the umbrella company.

What this means is that each week or month, when the freelancer completes a timesheet, Crumb. will need a copy so we can invoice the freelancers agency (unless they operate a self-billing system which most do). The agency pays the umbrella company and then Crumb. pays the freelancer net of any taxes and national insurances.

Our weekly fee is £17.50 plus VAT

If you would prefer not to go down the umbrella company route, you could choose to use our sister company The Accounting Crew, who provide full accounting services for a single standard fee of £85.00 plus vat per month.
Visit www.theaccountingcrew.co.uk for more information.

If you’re interested in CRUMB. why not give us a call on 0203 941 2740 or email [email protected]