Umbrella companies compared

Every provider here runs a referral scheme, so this is a partial list rather than a survey of the whole market. Accreditation was read from the accreditor's own register on 1 August 2026, not from the provider's marketing, and 5 of the 7 listed are currently accredited.

How to compare umbrella companies properly

Almost everything on an umbrella payslip is set by law. Income tax, employee and employer National Insurance, the apprenticeship levy and the pension minimum are the same wherever you go, so two compliant providers on the same assignment rate will pay you within a few pounds of each other. The margin is the only part any of them actually keeps, and it is the only number that genuinely differs.

That is worth remembering when you are handed an illustration. If one provider's take-home is noticeably higher than another's on the same rate, it is not being cleverer with your tax. It is either assuming a different number of weeks, quietly excluding holiday pay from the comparison, or doing something that HMRC will eventually unpick at your expense.

The five checks that matter

  1. Accreditation, checked at the source. FCSA and Professional Passport both publish member directories showing current status and expiry dates. One of the providers on this page had its accreditation lapse in June, which you would not learn from its own website.
  2. The margin, and when it is charged. Weekly or monthly, and only in periods you are paid. Ask about joining fees, leaving fees and charges for same day payments.
  3. Holiday pay. It is your money either way, but ask whether it is rolled up into each payment or held back until you take leave, and how you claim it. Held-back holiday pay that is never claimed is an old and profitable habit in this industry.
  4. Pension. Salary sacrifice into your own SIPP is the most valuable thing a provider can offer a higher rate contractor, because it escapes income tax and both sides of National Insurance. Not every provider allows it.
  5. The key information document. A legal requirement before you sign, showing the deductions in detail. Keep it, and compare your first payslip against it line by line.

What changed in April 2026

Since 6 April 2026, recruitment agencies are jointly and severally liable for PAYE and National Insurance on pay routed through umbrella companies, and where there is no UK agency in the chain the liability sits with the end client. The umbrella is still your employer and still runs the payroll, but the party that chooses it now carries the tax risk.

For contractors the practical effect is shorter preferred supplier lists and much more interest in accreditation. The April 2026 umbrella rules explains it in full, including the wider regulation expected in 2027.

Before you decide you need an umbrella at all

An umbrella is the normal way to be paid on an inside IR35 contract. If your contract is outside IR35, you do not need one, and a limited company will pay you more. Umbrella or limited company compares the two on cost, admin and risk, and the IR35 calculator puts your own day rate through both.

Common questions

How do I know an umbrella company is compliant?

Check its accreditation on the accreditor's own directory rather than on the provider's website, because certifications lapse and logos stay up. Ask for a key information document before you sign, which is a legal requirement and must show every deduction. Then apply the simplest test there is: if the take-home looks better than everyone else's on the same rate, it is not a better umbrella, it is a different arrangement, and the tax bill will find you rather than the promoter.

What is a good umbrella company margin?

Between £15 and £30 a week is the normal range, charged only in weeks you are actually paid. The margin is the only part of your money the umbrella keeps, so it is the one number worth comparing directly. Everything else on the payslip is set by tax law and is the same wherever you go.

Can I choose my own umbrella company?

Sometimes. Many agencies now work from a preferred supplier list, and since April 2026 they carry joint and several liability for unpaid PAYE in umbrella supply chains, so most have shortened those lists to providers they audit. Ask early whether you can bring your own, because it is much harder to change once the contract is signed.

Why do all the umbrella illustrations look the same?

Because they should. Income tax, National Insurance and the apprenticeship levy are set by law, so on the same assignment rate the only real differences between compliant providers are the margin and how they handle holiday pay and pensions. An illustration that stands out by more than a few pounds a week is using different assumptions, and it is worth asking which.

Do umbrella companies pay for referrals?

Most run a refer a friend scheme, typically between £25 and £100 for each person who joins and is paid for a few weeks. The reward usually goes through your own payslip. Schemes are discretionary and providers can change or withdraw them, so check the current terms on the provider's own page before you refer anyone.

Accreditation status and referral terms were checked on 1 August 2026 against the FCSA member directory and each provider's own published pages. Referral schemes are discretionary and can change without notice, so confirm the current terms with the provider. Margins vary by agency agreement. This page is general information, not financial advice, and we may be paid if you sign up through a link.