subject: 5 tips on choosing an umbrella company [print this page] Hi, my names Alex and I work for Danbro- Contractor Accountants. In this article I will be listing the five points I feel are most important when picking your Umbrella Company.
1. Are they compliant?
With so many umbrella companies popping up everywhere it's important to make sure the one you choose is professionally audited and operating compliantly. Many contractors aren't aware that, if the Inland Revenue choose to investigate your paying the correct tax, it's YOU they investigate and not your umbrella company. Of course any Umbrella Company Services will advise you that they are compliant and it it's difficult to tell otherwise.
2. Un-receipted expense claims
I would advise to steer clear of umbrella companies that promise to pay expenses without receipts. At the end of the day all umbrella companies operate under the same laws & legislations decided by HM Revenue & Customs, therefore they must all abide by the same rules. In the event of an investigation, these expenses would be disallowed, leaving you liable for the tax being owed and not your umbrella company.
3. Entry & Exit fees
Stay clear of umbrella companies that have entry, exit or minimum term commitments/penalty fees. A good umbrella company will maintain your customer loyalty by providing the best service and looking after their clients; these are the ones that won't need entry/exit fees.
4. Pick an established reputable umbrella company
In such a competitive industry, umbrella companies pop up and go into administration all the time, they will take your money with them, leaving you out of pocket. By picking an established umbrella company, based on reviews from colleagues and testimonials by clients, you will be able to be confident the support you receive from your Umbrella Service won't leave you high and dry if the worst comes to worst.
5. Service Levels
Will you have a dedicated point of contact? Is there an online service? Is customer service available if I need them?...These are the questions you should be asking yourself when choosing your umbrella company. At some point you will need to contact your umbrella company and it's important to have that added ongoing customer support and professional advice available if you need it. A good online service will make it a lot easier submitting time sheets and your expenses making the service a lot more user friendly. Useful tools such as an umbrella company calculator will be a good resource for calculating your projected salary.
