Have you just started contracting and are looking for an umbrella company? Or are you thinking of switching from your current provider? There are hundreds to choose from but how do you know which are compliant and which aren’t?
If you are working with a recruitment agency, they may have a list of trusted umbrella companies they work with regularly. It is recommended that you find out more about the umbrella companies on this list to see who you would like to use.
If you are researching umbrella companies you should consider the following:
The only differentiating factor between the deductions you will see from different umbrella company’s is their weekly or monthly margin. This margin is to cover the cost of processing your payroll and you can expect to pay around £15-35 per week.
Some umbrella companies have a tie-in period which requires you to give a certain amount of notice to them before you leave their service. Before you sign up to an umbrella company’s services you should always check whether or not they have a tie-in period.
Some umbrella companies will charge you an entry or exit fee. However, if you do not want to pay this there are plenty of providers who will not charge an entry/exit fee.
Most compliant umbrella companies will offer an insurance policy to its umbrella employees. The standard insurances you can expect to see are Employer’s Liability Insurance, Professional Indemnity Insurance and Public Liability Insurance. Umbrella Company UK will provide you with £25 million in insurance cover via our highly trusted provider.
Not all umbrella company’s process payroll daily, some will only process payroll once a week. Umbrella Company UK operates same-day Faster Payments which mean as soon as we receive funds from your agency or end client, we will process it and pay you the same day.
It is highly recommended that you use an umbrella company that is accredited by an industry regulatory body such as Professional Passport or FCSA. An industry accredited umbrella company will have to comply with strict codes of conduct and pass regular audits to ensure that they remain compliant with UK tax law and government legislation.
Umbrella Company UK is proudly accredited by FCSA.
When you sign up to an umbrella company, they will become your employer and are legally required to auto-enrol you into a pension scheme if you meet certain criteria. It is possible to opt-out of the pension scheme they enrol you onto but it is recommended that you have another scheme already in place.
