An umbrella company deals with the complications and confusions of Pay As You Earn (PAYE) and Emplyee National Insurance (EENI) reductions for your wages. An umbrella payroll company is a straight forward and simple way to obtain your pay via the recruitment agency (both work together but are seperate companies). When you get paid via an umbrella company, you baisically don’t have to worry about deducting your own tax as that is what the umbrella company does for you. But you get the benefits of working at probabl multiple different job sites on a temporary or short term basis via the recruitment company.

For example, if you work at several different schools acorss a calander month via a recuuitment agency, each of those schools do not pay you directly. They pay the recruitment agency, and the recruitment agency then pays you via the Umbrella Payroll Company that you are signed up with.