How to compare Umbrella companies in the UK

Umbrella companies in the UK can be greatly beneficial for both contractors and agencies.  You want to be able to compare those in your area to make sure that you are choosing the best.  You will need to do your homework.  You should compile a list of all of the companies you want to work with.  You will then use several factors which you will use to judge each company.  This will help to weed out quite a few of them.  Once you get down to just a few, you will be able to easily take one last look and choose the best one to work with.

Fee Structure
When looking at an umbrella company in UK, you want to consider the fees.  First, is there a fixed fee or do they base it on a percentage basis?  This is important because how much you make will impact which choice is better for you.  If you do not make a lot of money, a percentage-based fee will often be best for you.  However, if your paychecks are hefty, a fixed price will likely be in your best interest.  You also want to know how these fees will be assessed.  For example, do they charge you once a month or once a week?  When considering fees, look at them as they pertain to a gross monthly fee or a gross weekly fee. 

Payment Frequency
You will want to know how long it will take to get your pay.  Some companies will send your money quickly after you submit your timesheet, but others seem to take longer.  It depends on how you budget when it comes to whether or not you need a fast payment.  You also want to know if they offer CHAPS, BACS or Faster Payments transfers.

In addition to knowing the frequency, know the exact schedule.  For example, how will pays be dispersed during holiday times?  You also want to know if contingency reasons exist that will cause them to hold back any funds.  Get all of this information before signing anything.

Is Insurance Provided?
Some umbrella companies will offer employers public liability cover and Professional Indemnity insurance.  Before you work for a client, the majority will require that you be insured.  This will protect both the client and yourself.  When you are looking at the provided insurance plans, make sure that your specific trade or skill is covered.  If your occupation is a bit less common, the blanket policy may not include it. 

Hidden Costs
You want to thoroughly read the fine print in all of the contracts and paperwork.  You want to make sure that you are aware of all fees before signing your name and agreeing to work with the company.  If you are unsure about anything, just ask.  It is important to be fully aware of all fees from the very beginning.  See if there is any leaving or joining fees.  The majority of umbrella companies will not assess extra fees, but if they do you want to be aware of them right away.

Tips for Choosing an Umbrella Company

When you are looking for an umbrella company to work with, there are several things to keep in mind.  Not all of these companies will operate in the same manner.  If you need specific things, you need to make sure that the company you work with can provide these for you.  There are some tips you can employ to help you choose a reputable umbrella company that will be able to meet your needs.  Keep these in mind as you start your search and even after you choose one to make sure that the company you choose lives up to your expectations.

Experience
When you are working with an umbrella company, you want to make sure that they know what they are doing.  A brand new company is not necessarily bad, but this company is responsible for your money, so it is best to stick with those that are established.  Make sure that they have been in business for several years and that those working for the company have the proper education and experience.

Personal Service
When you are looking for a PAYE umbrella company for contractors, you want to make sure that they can satisfy your needs.  When you have questions and concerns, a support person should be available to help you.  You do not want to constantly have to leave messages and wait for a response.  If you contact them during off hours, they should respond no later than the next business day. 

Insurance
If the company you work with does not have insurance, there is a chance that you may not get your money should your service provider go bankrupt.  Professional indemnity insurance cover must be had by your chosen umbrella company.  They must also have employers' liability and public liability cover. 

Employee Benefits
This may be something that you need, or you may not need it at all.  Examples of employee benefits include things like maternity leave and sick leave.  These are highly beneficial, especially the sick leave.  You never know when you might get sick or injured and need to take a short time off of work to recover.  This gives you some peace of mind and will help you to not have to try and work sick. 

Payment Dates
You must work with a company that has clear payment dates.  You need to know when you can expect to get your money.  For example, do they pay weekly, biweekly or monthly?  You should get the payment policy in writing so that if issues occur, you have some type of recourse. 

Expense Policy
If you are a contractor, you likely have at least a few expenses.  You want to make sure that you can properly deduct these.  You want to make sure that the expense policy is clear because if it is not and a mistake is made, the tax liability could land on your shoulders.  You want to keep everything on the up and up, so know the policy inside out.  If you have questions, ask them before trying to claim any expenses.