How Long Can I Work for the Same Company as a Contractor?

Debunking the Two-Year Rule: How Long Can You Stay with One Client?

If you’re a UK contractor, you may have heard rumours that you can only work for the same company for two years. Let’s clear this up: there’s no legal time limit on how long you can contract for a single client through an umbrella company. You can continue your assignment for as long as both you and your client are happy.

“Umbrella companies are designed for multiple and successive assignments – your employment can last for years.”

The two-year myth often comes from confusion with the HMRC rules about travel expense claims, not from any restriction on contract length. If you’re not claiming travel expenses to the same workplace after two years, you can still work for the same client with no issue.

Can Contractors Work Full-Time?

Absolutely. Contractors can choose to work full-time hours, part-time, or flex their schedule to suit their lifestyle. This flexibility is one of the main reasons professionals are drawn to contracting.

Contractors are typically paid at a higher daily or weekly rate than salaried employees, and you have the freedom to pick and choose your assignments.

What Are the Benefits of Umbrella Employment?

Working through an umbrella company comes with several significant advantages:

Automatic Tax Handling

• No annual self-assessment required: Your umbrella company calculates and deducts all necessary taxes, so you won’t need to submit a self-assessment tax return unless you have other income streams.

Access to Employee Benefits

• Statutory rights: As an umbrella employee, you’re entitled to statutory benefits such as sick pay, maternity/paternity leave, and holiday pay.
• Annual leave: Calculated based on your hours worked, giving you peace of mind.

Additional Perks

• No chasing payments: The umbrella company manages invoicing and payment collection.
• Employee rewards: Many umbrellas offer perks like childcare vouchers, pension schemes, and rewards programs.

Here’s a quick comparison of umbrella employment versus traditional self-employment:

Feature	Umbrella Employment	Self-Employment/Ltd Company
Tax Calculated/Deducted	Yes	You handle it
Statutory Benefits	Yes (sick, holiday, etc.)	No
Flexibility	High	High
Annual Self-Assessment	Not Required (unless extra)	Required

Why Do Contractors Choose the Umbrella Route?

• Simplicity: Registration is fast and simple; you can be set up in 24 hours.
• Compliance: Your umbrella company ensures you stay compliant with UK tax and employment law.
• Support: Access to a dedicated contractor support team for help with any questions.

Key Takeaways

• No maximum time limit: You can work for the same company as long as you want via an umbrella.
• Full-time or part-time: The choice is entirely yours.
• Comprehensive benefits: Enjoy the best of employment and contracting flexibility.