What To Look For in Umbrella Company?

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Umbrella Companies: What to look for?

What to look for when searching for an Umbrella Company provider

There are a number of things you should consider when searching for an Umbrella Company provider.

All UK based PAYE Umbrella Company providers are governed by HMRC, which means that no compliant Umbrella Company can provide you with a higher amount of take home pay than any other. It is better to look for a provider with a flat fee as these ones are potentially cheaper. Customer support and ease of access to submit your timesheets and expenses are also factors to consider. You should always ask for a full breakdown of all deductions, and if there are any hidden costs or penalties, such as set up and leaving fees.

Different types of Umbrella organisations

  • PAYE Employment
    Under this scheme, which is the most common, you’re fully employed by the Umbrella Company when you start a contract.
  • The Swedish Derogation Model   
    Under this model, contractors are paid a fixed salary, even if they are between contracts, and will have full employment rights including sickness, maternity and in some cases, pensions.
  • Offshore Umbrellas
    Offshore Umbrellas offer several tax solutions for contractors and freelancers. We suggest that you avoid offshore Umbrella providers as there is a potential risk that HMRC will hold you accountable for lost revenue, potentially resulting in fines and back dated tax payments

Checklist for new providers

Ask the following questions when speaking to a new Umbrella provider:

  • What are their fees?
  • Is there a minimum tie in period?
  • Which types of insurance are provided?
  • Are there any exclusions within the insurance policies?
  • Do they charge you a fee for same-day payments?
  • When did the company begin trading?
  • Do they work with your recruitment agency?
  • How many contractors do they currently have employed?
  • How long will they take to produce invoices after receiving timesheets?

If you are looking for the benefits of an Umbrella Company, Churchill Knight can offer you the following benefits:

  • Maximise your take home pay
  • Minimum form filling - expenses and tax forms done for you
  • Manage your timesheets and expenses with our easy-to-use online portal
  • No tax worries - we take account of all the latest HMRC directives
  • Free and fast set-up and least effort - everything ready for you in a few hours

Churchill Knight was established in 1998 and has been engaged by several thousand freelancers and contractors during that time. Our experience will enable you to find the most suitable business set-up. All you need to do is tell us what your circumstances are and what you're looking to achieve.

For more information, give our specialist consultants a call on  01707 871 610 or email enquiry@churchill-knight.co.uk . Alternatively you can either request a call back or a calculation below. 

Maximise your Take Home Pay