When looking for an umbrella company to sign up to there can be a number of different things to consider to help establish which is the best option for you. We have picked these five tips to use when making your choice.
1.) Establish if an Umbrella Company is Right for Your Trading Needs
You will first need to choose the right trading structure to fit your needs. The best way to do this is to discuss your situation with an umbrella company and a contractor accountant, they should be able to offer professional advice on which option will work best for you.
2.) Umbrella Company Background
When looking through the various umbrella companies on the market, you want to make sure you research their background. This includes looking up their credit rating, reviews from past and/or current clients, how long they have been trading for, and their experience in the industry. It is also worth asking them if they would ever have any intentions to move your money offshore at any time. If they do, it may not fall under the true definition of a PAYE umbrella company and rather be classed as an offshore tax solution.
3.) Get Clarity on Fees
Once you have found some Umbrella companies, it is best to ask them what their fee structures are for their service and get clarity on their weekly or monthly fees. Also, ask if there are any extra fees such as expenses processing and completing tax forms. If they claim to be a free service, you will want to ask how they manage to offer the service for free and why they can offer a free service. Do not be afraid to ask questions and get as much information as possible so you can make an informed decision before signing up.
4.) Payroll Information
Naturally, you will want to know how you will be paid and the frequency of payment, so you can manage your personal finances and cash flow. Other things to look out for are ‘pay when paid’ clauses in the contract. You will want to be sure of qualifying for minimum wage, holiday, and sick pay.
5.) Terminating Your Contract
You do not want to be liable for any type of exit fees. This of course applies when you have adhered to the terms and conditions of employment during your time with the umbrella company in question. Naturally, this will mean you will want to check the terms and conditions before signing up so you’re aware of the expectations required to carry out your duties. Additionally, you must check for any notice periods and termination clauses.
Learn More on How to Choose the Best Umbrella Company
If you’d like to learn more about how you can choose the best umbrella company for you, feel free to reach out to our team here!