Top Tips for Choosing the Best Umbrella Company
Umbrella companies have been around from many years now and became popular when the IR35 was created. This was a piece of legislation which looked to stop contractors and freelancers paying themselves in a certain way. Nowadays a large percentage of IT contractors feed the money they earn from their IT Contracts through an Umbrella Company. In the UK more than 200 companies offer these services. In order to find a secure, well-run, and fairly priced umbrella company, you need to do your research.
1. Check that an umbrella company is the right trading solution for you
What is the payment frequency they use? When you are going to choose between these options you choose a right trading solution that best fits your basic needs. Explain your situation to both an umbrella company and a contractor accountant for suggestion on which option suits you best.
2. Research Background and Location
If an umbrella company option is the right trading solution for you, make sure you check up on the firm’s background, location and finances. Find out how long the firm has been rading. You should consider obtaining a credit reference to make sure the company is financially sound. If you discover that the provider is based offshore, it may not be an umbrella company at all, but an offshore tax solution.
3. Check out the fee structure
Find out exactly how much you will be paying each week or month. Before joining an umbrella company scheme check if the fee structure is fully inclusive or if you have to pay extra for things such as expenses processing, completing tax forms and processing expenses. If it is a free service, ask the umbrella why and how they can do this.
4: Find Out About Compliance
When you join, you should become a full-time permanent employee with a formal contract of employment. You should expect to be told exactly what expenses you can claim and informed you must keep receipts. You should receive a full contract of employment from the company and enjoy the rights and benefits the company offers.
5. Customer Service And How Quickly Can You Start?
You are buying into an umbrella scheme and so you should expect good levels of customer care. A dedicated account manager knows you and your background very well. Lots of companies offer various degrees of online support, some with web-based timesheet submission and expenses forms. If you are beginning an urgent contract, you might need a same-day or next-day start. You should find out if there are any penalties when leaving and what your notice period will be. Because there is such a choice of umbrella solutions providers, you don’t have to stay with one that does not give you the service you require at a price that suits you.
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