Using an umbrella company is an excellent way for many contractors to work. It permits you to benefit from a PAYE company,without having to establish a limited company on your own. It’s a fantastic option for contractors that aren’t sure how long they will spend contracting or people who work inside the IR35 legislation. An umbrella company provides a convenient and speedy solution for contractors and can help keep things simple. If you have determined that an umbrella company is the ideal option over a limited company,you will need to find the one that will work for your requirements.
Research the Company
When you look at an umbrella company,it is always important to look into their background. You can take a look at things like the company’s credit rating,where they are registered and how long they’ve been trading. Another important thing is whether the company will transfer your money . You’re looking for a PAYE company,not an tax solution.
Making sure where fees are concerned you know all ofthe details is essential. You don’t want to end up with a surprise fee,as you’d like them to be,however some umbrella companies are upfront about their fees. It’s important that you be sure you know whether you’ll be expected to pay extra for anything,in addition to what you’ll be paying every month.
Check the Legal Stuff
You want to check that everything is above board regarding legal matters . The umbrella company will be employing you,so you should have a contract of employment with them. Being an employee of the umbrella company means you have all ofthe legal protections that any other employee has.
Understand Payment and Taxes
Take a look at when and how you can expect to get paid by the umbrella company. You should be paid within a reasonable time,and you should not have to wait for clients to pay the umbrella company before getting paid. You should check thatyour tax forms are handled by the company too and that you are not charged extra.
What Support Is Offered?
It’s helpful to be able to access support from your umbrella company also. You will need to understand that they will be there for you if you have any difficulties but also if you have other issues. For instance,if you can be helped by them with a customer issue,you know that you will have someone on your side. They can offer support and advice,and perhaps even legal help.
The Process for Leaving
Another thing that you will need to assess is what happens if you want to leave the umbrella company. As the company is employing you,they should not charge you in case you want to leave and exit the contract. But you should still check to find out if there are some terms that you will need to follow,such as giving a period of notice.
Find the ideal umbrella company for your needs,and it might be the solution for you as a contractor.