Tips for choosing the right Umbrella Company for you

You’ve decided to take the leap into a career in contracting, so first things first you’ll need to choose an Umbrella Company for you to contract under. But how do you decide which one is the right one for you? With so many on the market it can be tough to know which will provide you with the best possible service.

In this blog we explore what you’ll actually need from an Umbrella, the non-negotiables, the things to look out for and how to find one.

FCSA Accreditation

The FCSA is the UK’s leading membership body that’s dedicated to maintaining and increasing the standards, and promoting the supply chain’s compliance for the self-employed labour market.

When an Umbrella Company has FCSA accreditation it means that its service has been awarded the industry’s gold standard, and has proven that it has demonstrated the highest industry standards. Being accredited means you don’t have to waste valuable time seeking out Umbrella Companies you can trust, as the FCSA already provides a list of accredited ones to choose from.

Here at SG Umbrella we are proud to be FCSA accredited, take a look here for more information.

Reputation

Speak to your contracting colleagues, look at review sites such as Google and Trustpilot, and take a look at online forums to see what other people have to say about the Umbrella Company you’re considering. Word of mouth is a powerful thing, and if a particular Umbrella comes up more than once in conversation, it’s usually for a good (or bad) reason.

Are they genuine?

A genuine Umbrella Company will take PAYE, income tax and National Insurance Contributions at source, and ensure you have employment rights such as maternity and paternity pay, sickness and holiday pay, and pension pay.

If the Umbrella isn’t genuine and doesn’t provide a contract of employment there’s a chance you’ll miss out on what you’re entitled to.

How much will they charge?

So long as the list of Umbrellas you’re considering are all genuine, the only thing that’ll separate them from one another is the standard of the service they offer and amount they charge for their services. The amount of income tax, PAYE, and National Insurance Contributions are all determined by HMRC, so the Umbrella has no control over that.

Always ask any prospective Umbrella’s what you’ll get for your money, and be sure that you’re happy with what they’re offering. It’s worth also asking whether they charge a joining or leaving fee, or whether there’s a minimum contract length you have to fulfil. If a genuine Umbrella values its clients and the service it provides, it shouldn’t ask you for any of these things.

Can they help you grow?

The goal of many contractors is to work via a Limited Company, for the tax benefits that this business model offers. If you’re using an Umbrella to test the waters and see if contracting is for you, or if you’re using one sort term due to the IR35 status of the contract, it’s worth considering how you’d transition to Limited in the future.

At SG, we also offer Limited Company Accounting and can help you get set up as well as managing your business for you for a competitive monthly fee. And the good news is that we offer a great value package that includes both Limited Company Accounting and the use of SG Umbrella whenever you need it.

Ask about their payment and expenses policy

When will you get paid? It sounds like a simple question, and any reputable Umbrella will usually process payroll at least once a week so that you get your money as quickly as possible.

You should also check their expenses system. They should advise you when it comes to keeping a record of your expenses in case of an investigation by HMRC, and only accept legitimate claims.

Are they friendly and approachable?

You’re busy contracting, and by paying an Umbrella Company you expect them to do their job and pay you on time and correctly. Also if you need advice, support or have a question they should always be available to assist you in any way possible, without the need for you to have to chase.

That’s why it’s so important to find an Umbrella Company that you’re comfortable with, who’s easy to work with and gives you progressive advice that will help you make the most from your contracting career.

How can SG Umbrella help?

FCSA accredited, and run by experienced contractor accountants, SG Umbrella is designed for contractors to rest assured that they’re receiving nothing but the best service they need and deserve. Including:

• Paying as much as you like into your preferred pension fund, saving Tax and NI
• Having the ability to switch over to our Limited Company accounting service, SG Accounting, whenever you need to
• IR35 and tax planning advice included
• Fixed margin, absolutely no hidden fees, and fantastically competitive value for money

For more information about our services and how we can help you, get in touch. Alternatively if you’re just starting out and looking for further advice take a look at our blog for beginners tips, Umbrella Company FAQs, the 5 main benefits to using an Umbrella, and how an Umbrella Company actually works.