CHOOSING A GOOD UMBRELLA COMPANY
Aug 21, 2020
With COVID19 impacting hundreds of thousands of employment opportunities nationwide and IR35 reforms around the corner, you may be considering a new working arrangement.
If you believe working as a contractor may be right for you, or your role is considered to be subject to IR35, the support of a good Umbrella company could be just what you need.
What is an Umbrella company?
Operating through an Umbrella company is a simple and straight-forward way to work as a contractor. If you choose this working option, you’ll become an employee of the Umbrella company, who will then contract out your services to other companies (your end clients) or employment agencies.
Working through a compliant and high-quality Umbrella allows you to enjoy the benefits of being a full-time employee, such as a record of continuous employment and holiday or sick pay while making the most of the flexibility of contracting. Plus, you don’t have to deal with the hassle of managing your tax.
But not all Umbrella companies operate to the same high standards, so it’s important that you choose one who will always work compliantly and look after your needs. After all, they’re going to act as your employer for as long as you choose to stay with them, so you can’t make this decision lightly.
What to consider when choosing your Umbrella
All Umbrella companies have to adhere to HMRC’s rules on tax. This means that no matter which Umbrella company you decide to be employed by, your earnings can’t be higher with one than they are with another. However, the amount of take-home pay that you receive can vary between Umbrellas; some look for ‘clever’ ways to save you tax (which could lead to compliance issues).
An Umbrella must provide you with a clear and detailed illustration of how your pay is calculated and the profit margin that they will deduct for providing the service. Requesting a complete fee structure is a great way to identify whether there are any hidden costs associated with sign-up or employment, or if you will incur any penalties for leaving the Umbrella company.
Another sign that you’re choosing a good Umbrella is if you find one that is well-established and accredited with the FCSA. Working through a legitimate company is vital to ensure you’re operating compliantly and avoiding HMRC-risk.
There are many other smaller elements to consider when choosing your perfect Umbrella company; such as how and when you’ll get paid, the company’s dedication to customer service and advice, as well as your ease of submitting your timesheets and accessing employee benefits. All of which can make a huge impact on your happiness with your employment.
Crest Plus Umbrella
As one of the UK’s longest-established Umbrella companies, we have significant experience and expertise in supporting Umbrella employees to make the most out of this way of working.
Since 1999, we have helped thousands of contractors to enjoy flexible working while receiving great company benefits. Our expert team of contractor accountants is dedicated to compliance and ensuring you’re paid correctly and on time.
With Crest Plus’s Umbrella, you’ll benefit from:
- A free contractor assessment before you begin to discuss whether Umbrella is the right choice for you.
- FCSA-accredited – ensuring you’re always working compliantly.
- Sample take-home pay calculation and detailed pay illustrations from the outset.
- Free and simple registration process, allowing you to begin contracting without delay.
- Employment benefits including holiday pay, sick pay, maternity and paternity leave.
- Switch between assignments easily.
- Save for the future with our pension scheme.
- Insurance covers provided as standard – including personal accident insurance, professional indemnity, public liability, and employers’ liability.
- SMS messages confirming our receipt of your time-sheet and to let you know you’ve been paid. Our online portal to view payslips and other important documents in real-time.
- Access to a range of rewards and benefits from our specially selected partners.
Contact us
To find out more about Crest Plus Umbrella, contact us on 01244 684700, one of our account directors will be happy to assist you and answer any of your contracting-related questions.