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An umbrella company basically becomes your employer so they're paying all the correct tax and national insurance etc at source, the whole point of being inside ir35 is that you're paid paye and not invoicing.
You might not need to go through an umbrella company if their payroll will pay you paye but à lot of places won't do it for the hassle so just farm everything off to umbrella companies.
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But can anyone be an umbrella as far as the end client is concerned? If it's a very specific thing where they will ask to see proof of my employment/contract with the umbrella, then I'll just start googling umbrella companies (unless anyone has any recs). But if they just need it to be a ltd company then could I ask my FiL/his ltd to invoice them and I give him a cut.
Have asked my accountant so will follow their lead.
Seems like I'd lose between 1/4 and 1/3 of gross pay through an umbrella company though which seems a chunk. They've said they'll increase dayrate but by how much I don't yet know.
Is an umbrella company a very specific thing or just a colloquialism? What if another (friendly) limited company billed on my behalf and I gave them 5% or something? Would that be legal? Isn't that basically what an umbrella company is?