subject: Choosing the Best Umbrella Company [print this page] Choosing the Best Umbrella Company Choosing the Best Umbrella Company
A huge number of such companies have been formed, so here are some sound tips if you are trying to choose which umbrella company to work for.
Firstly, before joining an umbrella company scheme check their fee structure, determine whether it is a set weekly/monthly fee or is a percentage of income taken, and also find out the frequency of pay.
Ask the umbrella company whether they possess professional indemnity, employers and public liability cover and check that their compliance with tax legislation has been assessed.
Be extremely wary of any umbrella company claiming to have unique expenses dispensation as only expenses incurred during contracting work can be claimed. Also be alert to the possibility of hidden costs. Ask if the umbrella company will pay in full or whether funds will be held back for what are often claimed to be reasons of contingency.
Often, your recruitment agency will have a range of umbrella companies deemed to be preferred suppliers, but this does not mean you can be complacent and you should always do a thorough check into the background of each umbrella company.
Another important factor can be whether the umbrella company offers a contributory pension scheme, something every contractor should be interested in. Word of mouth can be a good sign, especially from colleagues, so ask trusted friends if they can recommend a reputable umbrella company.
For self-employed individuals and contractors caught in the IR35 loophole, this article details hints and tips for finding a good umbrella company to work for.
