Providing you’re looking at fully compliant umbrella companies, the take home pay you are offered should be very similar amongst the providers. The only thing that should vary is the margin they charge for you to use their service.
Keep reading to find out more information about how much it costs to use an umbrella company.
Umbrella companies will charge you a margin to use their service. This margin will cover the administrative costs of carrying out your payroll, as well as other overheads that the provider faces. Typically, you should expect to pay £20 – £25 per week for an umbrella company.
Compliant umbrella companies will process your pay in the same way and will send your tax and National Insurance Contributions (NICs) to HMRC on your behalf (PAYE). Therefore, the only cost that will vary amongst umbrella companies is the margin they charge you for their service. This means your take home pay should be very similar, regardless of the provider you use.
To summarise, all compliant umbrella companies will process your pay (PAYE) in the same way and in accordance with HMRC’s rules and regulations. The only thing that will vary between providers is the margin they charge for you to use their service.
Some umbrella companies will have a low margin but will not include any additional features in their service. It is in your interest to investigate what extras you get as part of the umbrella arrangement to see if you are better off paying a couple of pounds more per week.
Every Umbrella Company UK client can benefit from the following at no extra cost:
There are dozens of unethical and non-compliant payroll providers out there. These companies are targeting contractors and are offering them the opportunity to retain up to 90 percent of their pay. If you see any of these offers, you should make sure you stay well clear. These companies could land you in serious trouble with HMRC either now or in the future (find out more about a piece of important legislation called the 2019 Loan Charge by clicking here).
If you are looking for a compliant, UK based and efficient umbrella company, look no further than Umbrella Company UK. Our margin is very competitive and we have thousands of happy contractors on our books.
To get a personalised take home pay projection or to speak to a professional, please call our Sales Team on 01707 669023 or complete the short form on this page.
Every Umbrella Company UK client will get access to £25 million free insurance, Same Day Faster Payments, their own dedicated Account Manager, and more!
We hope the above has helped you answer: “How much is it to use an umbrella company?” However, if you still have any questions, please do not hesitate to get in contact with us.
