Typically, the costs of working through an umbrella company are less than running a limited company, although without the tax advantages. For any contractor captured permanently under IR35, it can be the best way to work in compliance with HMRC guidelines.
The joining process for an umbrella company is simple and as soon as you’re set up you can start your contract right away. An umbrella company helps to keep everything straightforward, so you meet your tax obligations compliantly without any further responsibilities. All you have to do is submit your timesheet to allow payment to be made. Compared to running your own limited company, the administrative burden is substantially lower.