Using an umbrella company is an excellent way for contractors to get the job done. It permits you to profit from a PAYE company,without needing to set up a limited company for yourself. It’s a good option for contractors who aren’t sure how long they will spend contracting or people who work in the IR35 legislation. An umbrella company provides a solution for contractors and can help tokeep things simple. In case you have decided that an umbrella company is the ideal choice for you over a limited company,you will need to find the one that will work for your needs.
Research the Company
When you examine an umbrella company,it’s always important to check into their background. You can take a look at things such as the company’s credit rating,where they are registered and how long they’ve been trading. Another important thing to check is whether the company will move your money offshore. You’re looking for a PAYE company,not an offshore tax solution.
Compare Fees
Making sure you know the details all where prices are concerned is essential. You don’t want to end up with a surprise fee,as you’d like them to be but some umbrella companies aren’t as upfront about their fees. It’s important that you make sure you know what you will be paying each month,in addition to whether you will be expected to pay extra for anything.
Check the Legal Stuff
You need to check that everything is above board regarding issues that are legal . The umbrella company will employ you,so you should have a full contract of employment. Being an employee of the umbrella firm means you have all the legal protections that any other employee has.
Understand Payment and Taxes
Take a look at when and how you can anticipate to get covered by the umbrella company. You ought to be paid within a reasonable time,and you should not need to wait for clients to cover the umbrella company before getting paid. You should also check your tax forms are managed by the company too and that you’re not charged extra.
What Support Is Given?
It’s helpful to be able to get support from your umbrella company also. You will need to know that they will be there for you if you have any issues but if you have other issues. By way of instance,if you can be helped by them with a client issue,you know you will have somebody on your side. They can offer support and advice,and maybe even assistance.
The Process for Leaving
Another thing that you will need to assess is what happens if you wish to leave the umbrella company. As the company is employing you,they should not charge you in case you would like to leave and exit the contract. But you should still check to find out if there are any terms that you will need to follow,like giving a period of notice.
Find the umbrella company and it might be the solution for you as a contractor.
