Joining FAQs

Am I affected by IR35 if I work through an umbrella company?

No, IR35 rules don’t apply to those paid through an umbrella company. You can work inside or outside IR35; your deductions would be the same via the umbrella.

Because the umbrella company acts as your employer, we treat all income as employment income and deduct all tax and NI contributions at source. This means IR35 doesn’t apply, and you don’t need to make a separate declaration to HMRC. All income is reported via RTI with each payroll, and HMRC will be informed of your deductions.

How long does it take to get set up with an umbrella company?

We can’t speak for others, but at SmartWork, the set-up process can take as little as a few hours, depending on the availability of the necessary information (ID, NI number, passport, status (for EU nationals, etc.)) and how quickly the new starter can complete it.