Can I be self-employed and use an umbrella company?

Looking for a clear answer to ‘am I self-employed if I use an umbrella company’?

With years of invaluable experience helping contractors from a wide range of industries compare approved and vetted umbrella companies, you’ve come to the right place.

Regardless of whether you’re unsure if you can be employed by an umbrella company and self-employed at the same time, or believe you’ll be classed as self-employed if you use an umbrella company, we can help to clear any confusion.

Are you self-employed if you use an umbrella company?

Put simply, no.

If you’re using an umbrella company then you’re not considered self-employed or a sole trader. This is because the umbrella company employs you and pays your wages through PAYE (Pay As You Earn).

So, if you want to become self-employed by using an umbrella company, then you may need to rethink your plans.

Using an umbrella company, however, can still provide you with the freedom to pick and choose fixed-term contracts from a variety of recruitment companies.

If you’re unsure whether you should pursue self-employment or use an umbrella company, then it’s well worth exploring the greater benefits of using an umbrella company.

This includes the fact that your payroll will be dealt with professionally by the umbrella company, relieving you of the administrative burden involved in bookkeeping, deducting your income tax and national insurance contribution (NIC), and managing your own business.

Can you be self-employed and use an umbrella company at the same time?

As mentioned above, using an umbrella company doesn’t mean you become self-employed.

Quite the opposite, you’ll be employed by the umbrella company instead.

However, this doesn’t mean that you can’t benefit from umbrella company employment while still operating as a sole trader.

For example, you may choose to pick up fixed-term contacts via an umbrella company during the week, but work for yourself on weekends.


Contact Umbrella Tracker today

At Umbrella Tracker, we understand that the sheer range of payroll solutions can leave you feeling confused and frustrated.

This is why we offer a comprehensive UK umbrella company comparison service that can help you to choose the most suitable umbrella company for you and take back control of your payroll.

Having handpicked thousands of approved and fully vetted umbrella companies for our customers to explore (vetted via research, client testimonials, and Preferred Supplier Lists (PSLs) from recruitment companies), we ensure you have plenty of options no matter which industry you work in.

Regardless of whether you’re searching for the best umbrella companies for IT contractors, healthcare workers, or social workers, our team are on hand.

With our free, tailored, and unbiased advice, we can help you to choose the most suitable umbrella company for you, your industry, and your employment needs.

If you have any questions regarding the relationship between umbrella companies and self-employment, why not get in touch with our team of helpful advisors?

To discuss your specific requirements with a member of our team, please contact us today on 0203 026 3303.

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