Are umbrella companies legal?

Yes, Umbrella companies are legal.

Umbrella companies are set up and compliant with His Majesty’s Revenue & Customs (HMRC). They are also a regulated practice by organisations like the Freelancer & Contractor Services Association, as many freelancers and contractors choose to work umbrella companies, for ease regarding salary payments and management of their taxes.

What is an umbrella company?

What are the benefit of an umbrella company?

If I use an umbrella company, who is my legal employer?

What is a Unique Tax Reference Number (UTR)?

Why do I need a Unique Tax Reference (UTR) number?

How do I get a Unique Tax Reference (UTR) number?