Under this option you would become an employee of an Umbrella company which would also employ many other contractors.

The umbrella company would take care of all financial and administrative matters and would pay you a salary and appropriate allowable expenses.

Previously, we operated such an umbrella company (BrollyIT.com Ltd) however, HM Revenue & Customs have indicated that they are likely to severely restrict the level of expenses which can be claimed by employees of umbrella companies and as such a decision was made to close this company down since we do not believe in the future that this option will be financially viable for contractors.

Umbrella companies are however, suitable for individuals who are uncertain whether contracting will be a long-term business for them.