The UK contracting landscape has shifted again in 2025, and the way you choose to get paid matters more than ever. Between Umbrella PAYE and Limited Company routes, each offers different levels of flexibility, tax control and administration. Understanding the differences is key to making an informed decision that fits your current contract and future goals.

Umbrella PAYE – simplicity and security

Operating through an umbrella means becoming an employee of the provider. You’re paid through PAYE, so tax and NI are handled automatically. Benefits often include holiday pay, statutory sick pay and access to workplace pension schemes. The trade-off is less flexibility but far less admin and no need for accounting software or company returns.

Limited Company – control and complexity

A personal service company (PSC) offers greater financial control but comes with responsibility. You manage invoicing, tax filings and expenses yourself. It can be more tax-efficient for some contracts outside IR35, but for many inside IR35 roles, Umbrella PAYE remains the compliant choice.

Core Finance Management can help

Core supports both Umbrella and CIS models, offering transparent pay illustrations, same-day payments and full HMRC compliance backed by decades of industry experience. Whether you want the ease of Umbrella or the freedom of a Limited route, Core makes the transition smooth and secure.