Working for an umbrella means that you are classified as an employee, this gives you full employment rights, benefits, and protections including holiday pay, sick pay, maternity/paternity pay and access to HR support. These are the most common reasons why contractors use an umbrella company as opposed to their own limited company, where you simply wouldn’t get access to them.
This is particularly advantageous for new contractors and temporary workers; you don’t need to worry about setting up a limited company and having to deal with its complexities, accountants, HMRC and dissolving the company once your work is completed.