The key advantages to using an umbrellacompany are: 1. You can avoid the stresses of running a limited company. 2. You have no need to be involved inrunning spreadsheets, VAT returns, payroll matters, company accounts, taxation,etc. 3. The main advantage for short termcontractors is not having the costly process of forming a company and thenarranging for it to be dissolved. Umbrella companies can offer youdifferent types of service.  Listed beloware the options available to you. 
PAYE Umbrella orSalary Only Scheme This is the most common type ofumbrella arrangement and does not make any attempt to work out side ofIR35.  All your income would be paid bysalary only and it also allows for reasonable and allowable expenses. Umbrella companies can alsoalternative solutions that involve foreign currency loans and offshorearrangements to name just a few.  Thesesolutions are promoted on the basis that their method of pasyment gives them anadvantage over standard and UK bases umbrella company schemes. 
Before you buy into any of these solutionsyou need to endure that you comfortable with the solution being offered andmake sure you check that the arrangement is legal and that it is appropriate toyour personal circumstances.  You alsoneed to remember that legislation was introduced in the 2004 Budget that makesit a legal requirement for all ‘tax avoidance’ schemes to be registered withHMRC. To find the best umbrella company youneed to find out about the speed of their processing and also the quality oftheir service.  One of the most commoncomplaints about umbrella companies is that the above mentioned points are notto a level that is expected.   Someumbrella companies now offer service guarantees or your money back.   The best thing to do is to clarify thefollowing points with the umbrella company in advance. 
 How quickly willthey send an invoice to the agency after receiving your timesheet? How quickly willyou receive your pay once they have received money from the agency for yourwork? You also need to beaware that Umbrella Company actually employtheir contractors and because of this they will hold back a portion of yourmoney to cover things like holiday pay, with a view to paying it outlater.  You need to clarify in advanceexactly when you will be paid and if any monies are to be retained, for whatreason. Most agencies willrecommend an umbrella company and these umbrella companies will be judged onthe quality of service that is provided to both the agency and thecontractor.  Remember the agency islooking for a hassle free option.  Someagencies will have a preferred supplier list while other agencies will havecommercial arrangements with umbrella companies and these are not necessarilybased on the quality of service provided. It is a good idea to ask the agency why they are recommending https://www.hyumbrella.com/product/umbrella/advertising-umbrella/ as it is in your best interest to use the bestumbrella company for you.