Compare UK Umbrella Companies
Side-by-Side
Find the right umbrella or limited company provider for your contracting career. FCSA accredited options, transparent pricing, honest reviews.
Top UK Umbrella Companies 2026
All providers independently verified. Sorted by overall score.
Parasol Group
Best overallOne of the UK's largest and most trusted umbrella companies. FCSA founding member with over 20 years' experience.
Brookson One
Best for flexibilityOffers both umbrella and limited company solutions. Ideal if your IR35 status changes between contracts.
Danbro
Best valueCompetitive margins with full FCSA compliance. Great for contractors focused on maximising take-home pay.
PayStream (now part of Brookson)
Best for agenciesStrong agency relationships mean smooth onboarding. Now part of the Brookson Group for added stability.
Umbrella.co.uk
Best budget optionNo-frills, low-cost umbrella solution. FCSA accredited with transparent pricing and no hidden fees.
Churchill Knight
Best for limited companyExcellent limited company accountancy service alongside their umbrella offering. Ideal for outside-IR35 contractors.
Take-Home Pay Calculator
Enter your day rate to estimate your take-home pay through an umbrella company.
UK average contractor rate
Gross Monthly
£7,000
Estimated Take-Home
~£4,750/mo
After tax, NI, pension & margin
*Estimate based on 2025/26 tax year. Assumes standard tax code 1257L, 5% pension contribution, and no student loan. Actual take-home depends on your personal circumstances. Use this as a guide only.
Umbrella Company vs Limited Company
Umbrella Company
- ✅ Simple — no admin, no accounts, no Companies House
- ✅ Ideal for inside-IR35 contracts
- ✅ Employment rights (holiday pay, pension, sick pay)
- ✅ Switch between contracts easily
- ✅ No setup costs
- ❌ Less tax-efficient than limited company
- ❌ Limited expense claims since 2016 SDC rules
- ❌ Weekly margin reduces take-home pay
Best for:
Inside-IR35, short contracts, contractors who want zero admin
Limited Company
- ✅ Most tax-efficient option (dividends + salary)
- ✅ Full expense claims
- ✅ Professional image and credibility
- ✅ Retain profits in the company
- ✅ Ideal for outside-IR35 contracts
- ❌ Admin burden (accounts, VAT, Companies House)
- ❌ Accountancy fees (£100-150/month)
- ❌ IR35 risk if status is wrong
Best for:
Outside-IR35, long contracts, higher earners (£400+/day)
How to Choose an Umbrella Company
Check FCSA Accreditation
This is non-negotiable. FCSA-accredited companies have been independently audited for compliance with UK tax law. Using a non-compliant provider puts YOU at risk — including potential tax liability.
Compare Margins Transparently
The margin is the umbrella company's fee, deducted before tax. It should be a flat weekly or monthly rate with no hidden charges. If a company won't state their margin clearly, walk away.
Check Payment Speed
How quickly do you get paid after the agency releases funds? Same-day payment is ideal. Some companies hold funds for 1-3 days, which can affect your cash flow.
Read Real Reviews
Check Trustpilot, Google Reviews, and contractor forums. Look for patterns — consistent complaints about late payments or poor communication are red flags.
Understand What's Included
Pension auto-enrolment is legally required. Beyond that, look for insurance, online portals, expense management, and dedicated support. Some include contractor insurance in the margin.
Watch for Red Flags
Avoid companies promising unrealistically high take-home pay, offering 'tax efficiency schemes', or not clearly stating their FCSA/SafeRec status. If it sounds too good to be true, it is.
Frequently Asked Questions
What is an umbrella company?+
An umbrella company employs contractors on behalf of recruitment agencies or end clients. They handle your PAYE tax, National Insurance, pension, and payroll — you receive a net salary after deductions. It's the simplest way to work as a contractor without running your own limited company.
Umbrella vs Limited Company — which is better?+
It depends on your IR35 status. If you're inside IR35, an umbrella company is usually simpler and cheaper. If you're outside IR35, a limited company gives you more tax efficiency and control. Many contractors switch between both depending on the contract.
What does FCSA accredited mean?+
The Freelancer & Contractor Services Association (FCSA) is an independent body that audits umbrella companies for compliance. FCSA accreditation means the company has been independently verified to operate within UK tax law. Always choose an FCSA-accredited provider.
How much does an umbrella company cost?+
Most umbrella companies charge a weekly margin of £20-£30, deducted from your gross pay before tax. Some charge a percentage instead. Always check for hidden fees — the margin should be all-inclusive.
What about IR35?+
IR35 determines whether a contractor is genuinely self-employed or effectively an employee for tax purposes. Since April 2021, medium and large private sector clients determine your IR35 status. If you're inside IR35, you'll typically use an umbrella company. If outside, a limited company may be more tax-efficient.
Can I claim expenses through an umbrella company?+
Since the 2016 'supervision, direction, or control' (SDC) rules, most umbrella company contractors cannot claim travel and subsistence expenses. However, you may still claim some expenses depending on your working arrangements. Your umbrella company will advise.
How quickly will I get paid?+
Most umbrella companies offer same-day or next-day payment once they receive funds from the agency. Some offer a choice between weekly and monthly pay. Check the payment terms before signing up.
What's a take-home pay calculator?+
A take-home pay calculator estimates your net pay after all deductions (tax, NI, pension, umbrella margin). It helps you compare providers and understand what you'll actually receive. We provide one below — try it with your day rate.
Understanding IR35 in 2026
Inside IR35
Your client has determined that for tax purposes, you'd be considered an employee. You'll pay income tax and National Insurance at the same rates as employees.
Typical route: Umbrella company (simplest) or deemed employment through the agency.
Outside IR35
Your client has confirmed you're genuinely self-employed. You can take income as a mix of salary and dividends, which is more tax-efficient.
Typical route: Limited company with a contractor accountant.
⚠️ Important Since April 2021
Medium and large private sector businesses are now responsible for determining your IR35 status (not you). They must provide a Status Determination Statement (SDS). If you disagree, you have the right to appeal.
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