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Benefits of an Umbrella Company Part 4 - Continuous Employment

Another positive for employees working with an Umbrella company is that engaging this way provides them with continuous employment – particularly beneficial when the world of freelancing can seem daunting, or possibly viewed as less secure than being employed permanently elsewhere.

Despite engaging with numerous recruitment agencies and/or end clients, under an overarching contract of employment with an Umbrella company, statutory employment rights are guaranteed and continuous employment is maintained, proving that extra layer of security.

Breaking it down - how exactly does this help?

  • Tax – all of your tax is kept in one place, rather than chopping and changing between employers, potentially having a negative effect on your tax code/history. With a compliant Umbrella company , there should be no unexpected tax bills as the Umbrella company makes all the necessary PAYE and NI deductions for HMRC.

  • Statutory sick pay (SSP) - unlike those who are self-employed, employees of the Umbrella company are entitled to sick pay if they are signed off work. The Umbrella company covers the bill for this, giving employees that extra security.

  • Statutory maternity/paternity pay (SMP/SPP) – again, unlike those who are self-employed, employees of the Umbrella company are entitled to claim for SMP and SPP, with the Umbrella company covering these costs.

  • Mortgage applications/financial loans – potential lenders will take a keen interest in your type of employment to assess your finances. While obtaining a mortgage as a self employed worker is in no way impossible, lenders are likely to look more favourably on those in continuous employment.

For any assistance or help, we'll be delighted to speak to you. Feel free to contact us on or 01305233170.

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