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Posted on Jan 5th 2015

The rise of contract work through umbrella companies

An  umbrella company is a company that acts as an employer to agency contractors who work under a fixed term contract assignment usually through a recruitment employment agency.  Employees working through umbrella companies can claim tax deductable travel costs from their home to their temporary workplace. The government thinks this is money that they’re currently missing out on and want a slice of the pie. In their Autumn statement said they intends to claw back 120m income revenue from salary sacrifice arrangements and expenses, including those associated workers operating through umbrella companies.

Apart from the obvious tax advantages umbrella companies can represent a more practical option for those looking for a more independence and the opportunity to sample a wide range of working environments.

Interesting Fact: Leonardo di Vinci could write with one hand and draw with the other at the same time.