Using an Umbrella company is a brilliant way to allow contractors to continue in their roles after the IR35 legislation comes in from 6th April. However, choosing a reputable Umbrella company is incredibly important as they will essentially be your employer, so it’s worth doing your due-diligence and making the right choice! But what is an Umbrella company, how can they help you and what questions should contractors ask?
What is an Umbrella company?
They are an organisation set up to allow contractors to be paid as a PAYE employee. The Umbrella Company will employ the worker and cover all benefits such as SSP, maternity pay and employment rights.
When a contractor uses an Umbrella company, they will receive the same benefits of a normal employee, but they can continue to work on a contract basis
How does an Umbrella company help businesses?
Using contractors is a great solution for any business that needs a highly skilled worker for a project or if you have any seasonal peaks that mean you need to increase your staffing. However, paying contractors is a headache, so an Umbrella company can pay the contractors PAYE so that you don’t need to run your own Payroll. In addition, you won’t need to manage any legal or compliance issues associated with employing contractors as the Umbrella company does that all for you.
Specifically, what does an Umbrella company do?
Should I use an Umbrella company?
If any of the following apply to you, we think it would be a good idea to use an Umbrella company:
What questions should I ask an Umbrella company?
Your Umbrella company will be your employer, so do some research about whether they are a good fit for you or not, as you would if you were taking out a permanent role. Some places to start are:
When comparing Umbrella companies, what should I look out for?
• Joining and leaving fees
• Insurances not included in the given quote
• Margin fee (as an example for every £100 earned charge another £6)
• Part Pay Part Loan (avoiding paying tax and national insurance)
Find out more about how EdenGroup could provide you with a brilliant Umbrella service, get in touch with Beverley on 01276 688032 or email@example.com