Using an umbrella company is a popular option for thousands of contractors. In exchange for a fee, an umbrella company puts a contractor on their payroll, takes care of their tax and National Insurance payments as well as offering a range of statutory rights.
Often considered the easiest way to contract, more and more contractors are taking this route. As a result, thousands of umbrella companies have popped up to offer their services.
Although this means plenty of choice, it can also make it difficult and confusing for contractors to know which umbrella company to choose. After all, not all umbrella companies are the same – from fees to benefits, every company is different.
With every umbrella company under the sun claiming to be top dog, contractors need to know how to compare organisations to find the best umbrella company for them.
To help make the process easier, Umbrella Supermarket have compiled this handy guide to everything contractors need to know about comparing umbrella companies to find the best one for their needs.
In exchange for their services, every umbrella company charges a contractor fees. Fees are usually taken off a contractors’ take home pay before it’s transferred to them.
However, fees differ from company to company, so it’s crucial to consider everything from how much they charge to the way they charge it.
Umbrella company fees can either be:
Many contractors prefer for the former option. After all, many don’t want to have to pay more for the same services merely because their own pay has increased.
Other things to look for when it comes to umbrella fees is how often fees are taken – that can be weekly, monthly or occasionally less often, allowing you to choose an option that best fits with your own lifestyle.
It’s worth also looking out for any extra fees that companies can sometimes charge, including:
Again, these may impact your decision depending on how much the company charges.
When it comes to finding the best umbrella company for you, there are important questions to consider around payment terms - from how often you will be paid to how easy it is to be paid. Again, every company differs when it comes to payment terms meaning it’s important for contractors to compare in order to find the best fit for them.
When it comes to payments, contractors should look out for a few key factors:
Look into the umbrella company’s pension arrangements to find those that meet your personal requirements the best. After all, some companies offer better terms than others.
Clearly, if an umbrella company has a bad reputation, you don’t want to work with them. When it comes to finding the best umbrella company, contractors should take the time to research their history, reviews and credentials.
A personal recommendation is a big thumbs up, however, looking at online reviews is also a great way to gain an insight into the company’s reputation.
By carrying out a simple online search, contractors can also find other important credentials such as how long the company have been operating, how many contractors they work with, if they have experience of working with contractors in your sector and whether they have any additional accreditations that instil trust.
A great indicator of whether you can trust the company is by checking whether they are registered with the Freelancer and Contractor Services Association. If an umbrella company is registered with the FCSA it means that their operations, policies and processes meet strict standards.
In recent years, HMRC has tightened the rules on what expenses contractors can claim through an umbrella company. Umbrella contractors are only able to claim limited expenses, like mileage or accommodation, only if they occur whilst on the job.
Therefore, contractors should look out for and be wary of umbrella companies that claim they can save on tax by filing for a wide range of expenses as this is not the case.
When it comes to finding the best umbrella company for your needs, every contractor should make use of umbrella comparison tools to help them weigh up their best options. After all, 76% of people have saved money by using an umbrella comparison site prior to picking one to use.
Using Umbrella Supermarket’s award winning comparison tool, contractors can generate the best umbrella companies for their needs in just 2 minutes. No hassle, no phone backs.
Any contractor considering switching to an umbrella company will want to know how to find the best provider to work with.
Although you could spend your precious time and energy searching the web for the best umbrella company, there is an easier way – using an umbrella calculator.
In this guide, Umbrella Supermarket explains why every contractor should use an umbrella calculator in 2021.
If you are considering contracting you will need to decide on PAYE or umbrella.
It can be a difficult decision to make and contractors will inevitably be questioning which option will be the best for them.
To help every contractor get on the right track for them, in this guide Umbrella Supermarket looks at PAYE vs umbrella, outlining the key differences and how this will impact you.
There are many reasons that contractors across the UK opt to work under an umbrella company.
Umbrella companies offer an easy way to contract and remove the need for the contractors to worry about the burdens of admin, finances, tax and IR35, all things that limited company contractors have to deal with.
For this reason, many contractors will be weighing up their options and questioning whether it is worth using an umbrella company in 2021. To help make the decision that little bit easier, Umbrella Supermarket has put together this guide on the pros and cons of using an umbrella company.
Any contractor that is considering operating through an umbrella company in 2021 will need to understand Umbrella Company fees - from why an umbrella company charges fees, how they are paid to how much the contractor will pay.
In this guide, Umbrella Supermarket answers those all-important questions to help every contractor know exactly where they stand when it comes to umbrella company fees.
If you’ve made the decision to contract through an umbrella company in 2021, you will next need to find an umbrella company that’s right for you.
After all, there are lots of umbrella companies out there, so how do you know which one to choose?
To help you find the best umbrella company for you, in this guide Umbrella Supermarket outlines what makes a good umbrella company, so you can rest assured you’re making the right move.
One of the many advantages to operating through an umbrella company for contractors is that they become an employee of their chosen provider.
In turn, this means that the contractor will be automatically enrolled onto the umbrella company’s workplace pension scheme.
To help contractors find out more about umbrella company pensions Umbrella Supermarket has put together this handy guide.
If you are considering contracting through an umbrella company you will naturally have questions and queries over how they work.
After all, making the move to umbrella can be a big step for contractors. To help, in this guide Umbrella Supermarket explains how to get started with an umbrella company and share our top tips for using one in 2021.
PAYE or umbrella is a question asked by every contractor. Which one you opt for will have a big impact on your contracting career and lifestyle. So, it's important to make the right decision for you.
To help makes things a little bit easier, Umbrella Supermarket has put together this guide on PAYE or umbrella, outlining the key differences between each, to help you make the best and most informed decision for you.
One of the many benefits to working through an umbrella company is that you will receive holiday pay as well as a range of other statutory benefits including sick pay, maternity and paternity pay.
To find out more about umbrella company holiday pay, and how to calculate how much you will be entitled to, Umbrella Supermarket has put together this handy guide.
Contractors must make several decisions throughout their contracting careers. One big decision contractors have to make is how they will operate.
One way that contractors can work is through an umbrella company.
Umbrella companies have become an increasingly popular way to contract in the past few years, offering many benefits to the contractor. But, how do you know whether this option is right for you?
To help every contractor make the right decision for them, in this guide, Umbrella Supermarket explains when not to use an umbrella company.
There are tons of benefits to using an umbrella company, which is why they have become such a popular option for contractors in recent years.
After all, an umbrella company takes away the stress and hassle of operating through a limited company whilst offering contractors a range of advantages, such as statutory rights, paying them a salary, deducting correct tax levels and National Insurance, and taking care of tasks like expense processing and invoicing.
However, as more and more contractors opt to use the services of an umbrella company, more providers have started to claim that they are HMRC approved.
To bust the myths around HMRC approved umbrella companies and get straight to the facts, in today's guide Umbrella Supermarket look at whether HMRC approved umbrella companies really exist, so you know exactly where you stand.
If you're considering making the leap to contracting, you will understandably want to know how much you will have to pay in umbrella company costs. After all, this amount comes directly out of the contractor’s pocket, so it’s important to be clued up on how much you should expect to pay.
To help contractors, in this guide Umbrella Supermarket answer the all-important question of how umbrella companies cost in 2021.
