Working with an umbrella company has become increasingly popular in recent times. Considered an easy, hassle-free way of contracting, an umbrella company offers contractors a wide range of benefits and takes care of time-consuming tasks on their behalf.
However, as more and more contractors have opted to work with an umbrella company, naturally, more umbrella companies have opened up to offer their services.
Although it’s great to have a lot of choices, it can actually make the decision of which umbrella company to choose harder as, with every umbrella company claiming to be the best, it can be difficult to know which way to turn.
To help make the decision easier, Umbrella Supermarket shares our top tips on choosing the best umbrella company for contractors, so you can find the perfect match.
Before we share our top tips on finding the best umbrella company, let’s first look at what one is and why they have become such a popular option for contractors.
An umbrella company employs the contractor, meaning they are therefore paid a salary and their tax is calculated and deducted from their pay using the PAYE system. This is great news for contractors as it gives them a level of security in having a regular salary and also means that unlike limited company contractors who have to file for self-assessment, there is no need for tricky tax calculations.
As an employee, the contractor also qualifies for statutory benefits through the umbrella company. This means they are entitled to sick pay, holiday leave, a workplace pension, and maternity/paternity leave.
Again, this is a big advantage to working with an umbrella company. After all, limited company contractors do not receive such rights and should they fall ill or want to take a break, they must pay for this out of their own pockets. For more help on umbrella vs limited company, check out our handy guide.
Using an umbrella company is a popular choice for thousands of contractors in the UK who wish to couple the freedom to choose which contracts they work on and when coupled with the benefits and security of employment.
So, that’s what an umbrella company is and why it is an appealing option for contractors. Now, let’s look at how to choose the best umbrella company.
To help make the whole processing of selecting an umbrella company easier, you should start by using an umbrella company calculator. This will allow you to refine the number of umbrella companies you are comparing to ensure you are only looking at those relevant to your preferences and needs. An umbrella calculator can save you a lot of wasted time and effort otherwise spent searching the web manually.
For example, with Umbrella Supermarket’s award-winning umbrella calculator, contractors can input their details and preferences and generate a list of the most suited umbrella companies in just 2 minutes.
The results will display what your take-home pay will be, what benefits you will receive, and what taxes you will pay with each umbrella company, helping you easily compare results.
Once you’ve refined the number of umbrella companies suited to you to just a handful, now you can look at some other criteria to help find the best fit for you.
Every umbrella company charges fees in exchange for their services. However, there is no set rate, and fees vary from company to company. That’s why, when choosing which umbrella company to work with, it’s always important to look at what they charge.
There are two ways umbrella companies charge contractors which you will need to familiarise yourself with:
Now you know how an umbrella charges its fees, you can compare companies based on their costs to find the best one.
Although you want to get a fair deal, it is also worth remembering that the cheapest option isn’t always the best. Contractors will need to strike a balance between cost and what they will receive in return. After all, some contractors need extra levels of service, such as added insurance cover, which will be worth paying that little bit extra for.
For more information, check out our handy guide to umbrella company fees.
It’s always a good idea to check out an umbrella company’s background and reputation to help you find the perfect one. Although most are trustworthy and reputable, like in any industry there is always a handful that isn’t, meaning it’s better to be safe than sorry.
It’s good to look at things like how long the umbrella company has been trading and any reviews it has received. This can be as simple as carrying out a quick internet search but will allow you to gain a better grasp of how well you can trust the company.
An umbrella company is required to cover the contractor with employer’s liability insurance which covers the contractor in case they become ill or injured at work, so it’s always worth double-checking that the company complies with this.
Additionally, many umbrella companies offer professional indemnity and public liability insurance which is usually required in your contract. This is a good sign meaning you don’t have to pay for this out of your own pocket.
To give themselves the edge over the competition, many umbrella companies will offer additional levels of cover. This can come in handy if you require specific cover, so it’s always looking out for.
With Umbrella Supermarket’s quick and easy to use umbrella calculator contractors can find the best umbrella company for them in just 2 minutes.
We make it quick and easy to find umbrella companies best suited to your needs, so all you need to do is compare a handful of results to find your perfect fit. Ready to see what our calculator can do for you today?
Any contractor considering switching to an umbrella company will want to know how to find the best provider to work with.
Although you could spend your precious time and energy searching the web for the best umbrella company, there is an easier way – using an umbrella calculator.
In this guide, Umbrella Supermarket explains why every contractor should use an umbrella calculator in 2021.
If you are considering contracting you will need to decide on PAYE or umbrella.
It can be a difficult decision to make and contractors will inevitably be questioning which option will be the best for them.
To help every contractor get on the right track for them, in this guide Umbrella Supermarket looks at PAYE vs umbrella, outlining the key differences and how this will impact you.
There are many reasons that contractors across the UK opt to work under an umbrella company.
Umbrella companies offer an easy way to contract and remove the need for the contractors to worry about the burdens of admin, finances, tax and IR35, all things that limited company contractors have to deal with.
For this reason, many contractors will be weighing up their options and questioning whether it is worth using an umbrella company in 2021. To help make the decision that little bit easier, Umbrella Supermarket has put together this guide on the pros and cons of using an umbrella company.
Any contractor that is considering operating through an umbrella company in 2021 will need to understand Umbrella Company fees - from why an umbrella company charges fees, how they are paid to how much the contractor will pay.
In this guide, Umbrella Supermarket answers those all-important questions to help every contractor know exactly where they stand when it comes to umbrella company fees.
If you’ve made the decision to contract through an umbrella company in 2021, you will next need to find an umbrella company that’s right for you.
After all, there are lots of umbrella companies out there, so how do you know which one to choose?
To help you find the best umbrella company for you, in this guide Umbrella Supermarket outlines what makes a good umbrella company, so you can rest assured you’re making the right move.
One of the many advantages to operating through an umbrella company for contractors is that they become an employee of their chosen provider.
In turn, this means that the contractor will be automatically enrolled onto the umbrella company’s workplace pension scheme.
To help contractors find out more about umbrella company pensions Umbrella Supermarket has put together this handy guide.
If you are considering contracting through an umbrella company you will naturally have questions and queries over how they work.
After all, making the move to umbrella can be a big step for contractors. To help, in this guide Umbrella Supermarket explains how to get started with an umbrella company and share our top tips for using one in 2021.
PAYE or umbrella is a question asked by every contractor. Which one you opt for will have a big impact on your contracting career and lifestyle. So, it's important to make the right decision for you.
To help makes things a little bit easier, Umbrella Supermarket has put together this guide on PAYE or umbrella, outlining the key differences between each, to help you make the best and most informed decision for you.
One of the many benefits to working through an umbrella company is that you will receive holiday pay as well as a range of other statutory benefits including sick pay, maternity and paternity pay.
To find out more about umbrella company holiday pay, and how to calculate how much you will be entitled to, Umbrella Supermarket has put together this handy guide.
Contractors must make several decisions throughout their contracting careers. One big decision contractors have to make is how they will operate.
One way that contractors can work is through an umbrella company.
Umbrella companies have become an increasingly popular way to contract in the past few years, offering many benefits to the contractor. But, how do you know whether this option is right for you?
To help every contractor make the right decision for them, in this guide, Umbrella Supermarket explains when not to use an umbrella company.
There are tons of benefits to using an umbrella company, which is why they have become such a popular option for contractors in recent years.
After all, an umbrella company takes away the stress and hassle of operating through a limited company whilst offering contractors a range of advantages, such as statutory rights, paying them a salary, deducting correct tax levels and National Insurance, and taking care of tasks like expense processing and invoicing.
However, as more and more contractors opt to use the services of an umbrella company, more providers have started to claim that they are HMRC approved.
To bust the myths around HMRC approved umbrella companies and get straight to the facts, in today's guide Umbrella Supermarket look at whether HMRC approved umbrella companies really exist, so you know exactly where you stand.
If you're considering making the leap to contracting, you will understandably want to know how much you will have to pay in umbrella company costs. After all, this amount comes directly out of the contractor’s pocket, so it’s important to be clued up on how much you should expect to pay.
To help contractors, in this guide Umbrella Supermarket answer the all-important question of how umbrella companies cost in 2021.
