Umbrella vs. PAYE
Most of us are familiar with standard Pay as You Earn...
An Umbrella company is an employer; one that employs contractors, freelancers and supply workers. When you join, you become their employee. You are given and are protected by a permanent contract of employment which, unlike a contract directly with an agency, remains in place even when you're in between agency assignments.
Most of us are familiar with standard Pay as You Earn (PAYE). If you pick this option, it means that your agency runs your payroll. If you go with an Umbrella, they'll run your payroll instead. But an Umbrella also offers you a number of additional benefits that are specially tailored for temporary workers.