Let’s start by looking at why umbrella companies charge fees.
An umbrella company will employ the contractor and offer them a range of benefits. These include statutory benefits such as sick pay, holiday leave, a workplace pension and paternity or maternity leave. The umbrella company will also take care of tasks such as invoicing the client, chasing payments, plus any admin or paperwork that is required.
Finally, the umbrella company will also provide the contractor with a basic level of insurance required to carry out the contract at hand. This usually covers professional indemnity insurance, public liability insurance and employer liability insurance as a minimum.
Many umbrella companies will also offer additional benefits and services to the contractor for an increased fee. This is important to consider when comparing umbrella company fees as those with low fees might only offer basic services but you might require more from a company.
Additional perks can include:
In return for these benefits, the contractor will pay the company a fee.
The great news is that HMRC considers umbrella company fees as a legitimate expense, meaning you will not pay tax on them.
To help you compare umbrella company fees, we will next outline how umbrella companies charge their fees, how much you should expect to pay and any extras to look out for, to help you find the best deal.
Umbrella companies can charge their fees in one of two ways, these include:
Another factor to account for when comparing umbrella company fees is whether they are charged as net or gross fees.
When comparing umbrella company fees, it is always important to look out for how they charge their fees as this can make a big difference on how much you will end up paying.
Contractors should also look out for added costs umbrella companies can charge when looking at comparing fees. After all, these can have a direct impact on how much you take home.
Some common extra costs to look out for include:
Always make sure you read through the small print to understand exactly what the umbrella company fee covers and whether you will end up paying more for additional costs. After all, some umbrella companies will advertise a low fee but will charge extra for certain services which can add up.
Now you know what to look out for when it comes to umbrella company fees and what aspects you should be comparing, Umbrella Supermarket’s umbrella calculator can help make the next steps easy.
Simply input a few key details into our handy tool, such as your contractor preferences and day rate, and we will generate a list of the best suited umbrella companies for your needs. What’s more, we will clearly list each umbrella company’s fees.
Presented in an easy to view list form, you will be able to see exactly what fees each company is charging and what services and benefits you will receive in return. What’s more, you can always edit your information to see how this will impact your results and how much you will pay in fees.
Our umbrella company calculator makes it quick and easy for contractors to compare umbrella fees, to help you find the best deal. Why not see what we can do for you in 2021?
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.
