IT contractors and other self-employed workers are no longer using umbrella companies just top avoid complex tax issues.

In the recent years, most workers using umbrella companies were doing so because they wanted to save themselves the hassle of IR35 tax legislation, according to Contractor Calculator.

However, the umbrella company landscape has now evolved rapidly, with many Tarpon clients being high-earners, claims the firm's tax director Anthony Bennett.

Mr Bennett told the website that contractors using their service do so because of the dedicated account management and tax efficiency advice they get, done with speed and minimum fuss.

"Many of our contractors have 'grown-up' with us, have families and a mortgage and something as simple as a guaranteed regular payslip makes a huge difference to their peace of mind," he added.

Small business minister Mark Prisk recently told Enterprise Nation that following through with the promise to simplify IR35 legislation will allow IT contractors and other self-employed workers to thrive.