Umbrella Company

More and more contractors are going the Umbrella Company route. The Government, by its policies, is pointing them in that direction. So, how do you join one? You can call any of them up or you can do it online for most brollies.

What do they need from you? They will need a copy of your passport or other means of identification and your P45. After that all you need to do, once you’ve joined, is put in your timesheets online and let them have your expenses claims. They will then get the money from the agency or client and pay you after deducting taxes.

As you can see, joining one is not difficult at all. Your agency may tell you that you must join a particular one. However, that is nonsense. They are probably getting a bung from that particular Umbrella Company to send you to them. However, that is illegal. Insist on choosing your own one. A brolly that is good for the agency may not necessarily be good for you. After all, someone has to pay the agency’s commission for sending you to this particular one.

Ask the Company questions like:-
- Is there any joining fee?
- Is there any leaving fee?
- What do you charge?
- How often do you pay, weekly or monthly?
- How soon after I put in my timesheet will you pay me?
- What expenses can I claim?
- How many contractors do you have already?

Every good Umbrella Company will be happy to answer these questions. Try a few of them and see which Company gives you the best answers. Ask other contractors what their Company is like and their experiences with them.

For a selection of good Umbrella Companies check out Which Umbrella Company

For good examples of offshore Umbrella Companies which pay out a minimum of 85% of the contractor’s take home pay, click
BestPay
and
Tower Umbrella