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Joining FAQs

Am I affected by IR35 working through an umbrella company?

No, IR35 rules are irrelevant for those being paid their income via an umbrella company. You can work inside or outside IR35; your deductions would be the same via the umbrella.

As the umbrella company acts as an employer, all income is treated as employment income, and we deduct all tax and NI contributions at source. This means IR35 is not applicable, and no separate declaration needs to be made 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 be 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 quick the new starter can complete the set-up process.