Working through an umbrella company is an appealing option taken by thousands of contractors in the UK. As an easy, hassle-free way to work, umbrella companies ensure contractors are exempt from IR35 legislation, work out and deduct tax and National Insurance contributions, allow contractors to enjoy statutory rights whilst giving them the freedom and flexibility to choose what contracts they work on and when.
With increasing numbers of contractors taking this route, more and more umbrella companies have opened to cater for demand.
Although this gives contractors plenty of choice, with every company claiming to be the best umbrella one out there, it can also leave contractors wondering which way to turn.
To help contractors choose the best route forward, Umbrella Supermarket explain how every contractor can choose the best umbrella company for their contracting needs.
Let’s start with the basics – what is an umbrella company and how does it compare to other contracting options?
Contractors can follow a few different routes when it comes to how they contract:
Umbrella companies are a great bridge between self-employment and employment, offering contractors the benefits of choosing their own work whilst giving them statutory rights and taking care of tax and admin liabilities.
As employers, Umbrella companies also cover contractors under their Professional Liability & Professional Indemnity Insurance which are compulsory requirements for all contractors.
It’s clear to see why this is such a popular option for thousands of contractors. However, the difficult part is choosing the best umbrella company for you. After all, contractors need to ensure they pick a great umbrella company that is suited to their personal preferences – whether that’s finding the most cost-effective company or seeking one that can help with child credits.
With so many umbrella companies competing for your business, the first step is to use an umbrella company comparison tool to refine down the number of companies you are looking at based on your personal preferences.
Umbrella Supermarket’s award-winning umbrella company comparison tool allows you to enter your preferences and generate a list of the best umbrella companies for you in just 2 minutes.
The results will display your net take home pay, range of benefits and what taxes you will pay with that particular umbrella company.
Now you’ve whittled down the number of umbrella companies to just a handful, you should next look at some generic criteria to help you find the best fit for you:
Every umbrella company charges the contractor a fee in exchange for their services. However, fees vary from company to company.
There are two ways umbrella companies charge contractors:
Another thing to look at when comparing umbrella companies is when and how often they pay you.
Check the umbrella company’s payment terms to clarify whether they pay weekly, fortnightly or monthly, to find the option that best suits your lifestyle.
The other important thing to look out for is that you will be paid on time. Although this is difficult to predict, there are some signs to look out for:
As your employer, the umbrella company is required to cover you with employer’s liability insurance which covers you in case you become ill or injured at work.
In addition, many umbrella companies offer professional indemnity and public liability insurance which are 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 competitive edge, some umbrella companies will also offer additional levels of cover. Although this will be irrelevant to some contractors, it is handy for those contractors who require specific kinds of insurance.
Some umbrella companies will charge additional fees on top of their fixed or percentage fee.
These additional costs are important to look out for as they can significant.
These include:
Umbrella Supermarket’s quick and easy to use umbrella company comparison tool lets every contractor find the best umbrella company to suit their personal needs and preferences in just 2 minutes. Contractors can input their details, click go and find the best umbrella company them.
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.
