What to look out for when selecting an Umbrella Company
Using an umbrella company is an exceptional way for contractors to get the job done. It permits you to profit from a PAYE company,without needing to establish a limited company on your own. It’s a fantastic option for contractors who aren’t sure how long they will spend contracting or people who work inside the IR35 legislation. An umbrella company provides a convenient and speedy solution for contractors and can help tokeep things simple. If you have determined that an umbrella company is the right choice over a limited company,you will need to find the one that will work for your needs.
Research the Company
When you look at an umbrella company,it’s always important to look into their background. You can have a look at things like the company’s credit rating,how long they’ve been trading and where they are registered. Another important thing to check is whether the company will move your money . You’re looking for a PAYE company,not an offshore tax solution.
Making sure where prices are concerned you know all ofthe details is essential. Some umbrella companies aren’t as upfront about their fees as you would like them to be,although you don’t want to end up with a surprise fee. It’s imperative that you make sure you know what you’ll be paying each month,in addition to whether you’ll be expected to pay extra for anything.
Check the Legal Stuff
You want to check that everything is above board regarding matters that are legal also. The umbrella company will employ you,so you should have a contract of employment with them. Being an employee of the umbrella company means you have all ofthe legal protections that any other employee has.
Understand Payment and Taxes
Take a look at when and how you can anticipate to get paid by the umbrella company. You should be paid within a reasonable time,and you should not need to wait for clients to pay the umbrella company before you get paid. You should also check your tax forms are managed by the company too and that you are not charged extra.
What Support Is Given?
It is helpful to be able to access support from your umbrella company also. You will need to understand that they’ll be there for you in the event that you have any issues but in the event that you have other problems too. By way of instance,if you can be helped by them with a client issue,you know you will have someone on your side. They can offer support and advice,and maybe even assistance.
The Process for Leaving
Another thing that you’ll need to check is what happens when you wish to leave the umbrella company. As the company is employing you,they should not charge you in case you want to leave and exit the contract. However, you should still check to find out if there are any terms that you will need to follow,such as giving a period of notice.
Find the right umbrella company and it could be the ideal solution for you as a contractor.