Whether you are considering joining an umbrella company in 2021 or are thinking about changing who you contract with, it is important that you can accurately compare umbrella costs to ensure you get a fair deal.
The income tax and National Insurance you pay should be the same regardless of which umbrella company you choose to work with. However, the fees a company charges can have a significant impact on your take-home pay. That’s why every contractor should do their research when it comes to choosing which company to work with.
In this guide, Umbrella Supermarket explains how to compare umbrella costs, from the fees they charge to additional costs to look out for, to help you make the right decision.
An umbrella company offers the contractor a range of benefits. The company makes the contractor their employee, pays them a salary, calculates and deducts their tax contributions through the PAYE system, invoices the client on their behalf, offers them insurance cover, entitles them to statutory rights plus other contractor-specific benefits.
In exchange, the umbrella company charges a fee.
Although this will mean an added expense each month, the upside is that your umbrella company fee is considered a legitimate expense by HMRC, meaning you don’t pay tax on it.
There are two main ways an umbrella company will charge fees:
The other way that umbrella costs can differ is whether they are charged as net fees or gross fees:
Again, it is important to look out for whether the umbrella company charges gross or net fees as this can have a big impact on what you will pay.
Every umbrella company is different, and each charges a different fee. Although there is no set rate, in general, contractors can expect to pay in the range of £25 upwards per week. Most will charge around £25 - £30 per week or £80 - £130 per month.
Of course, if the umbrella company provides you with extra services and benefits, then you can expect to pay more in return. However, if you only require minimal service, you will pay a minimal rate.
The good news for contractors is that as there are a lot of umbrella companies out there, competition is tight, meaning fees are affordable.
It’s easy to compare umbrella costs when merely looking at the fees they charge. However, many umbrella companies charge additional costs, which is worth bearing in mind.
When doing your research, always look out for whether the umbrella company charges extra costs for:
When comparing umbrella costs, there are a few red flags every contractor should look out for. After all, although most umbrella companies can be trusted, like in any industry, there is always a handful of those that can’t.
So, when comparing umbrella costs, it’s important to look out for the following:
When comparing umbrella costs, don’t be fooled by claims that the company can save you on tax as HMRC have said this is not the case, and it will be the contractor, not the company, that will end up in trouble if they are caught out.
For more help, check out our guide to HMRC approved umbrella companies.
Now you know how umbrella companies charge their fees, how much you can expect to pay, and any red flags to look out for, you can quickly and easily compare umbrella companies based on their costs.
What’s more, Umbrella Supermarket’s contractor calculator allows contractors to easily input their information to find a list of the best umbrella companies and their fees, so you can find the best company for you. Ready to see what we can do for you?
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.
