Some things to think about when choosing an Umbrella company:
- The speed with which they will process your PAYE and expenses and their timescales/deadlines.
- How fast will you be paid once the Umbrella company receives payment from the recuitment agency. This will also depend on how fast they send an invoice to the agency.
- How easy is it to submit your timesheet details and expenses (nearly all are processed online but some website interfaces are better than others!)
- What deductions will they make from your gross salary (eg. holiday pay.)
- What their fee structure is (bear in mind that the amount of work done by an Umbrella company is not particularly related to your earnings – a higher earning contractor is unlikely to generate significantly more work than a lower earning contractor)
- Who is behind the Umbrella Company. Most are run by qualified accountants with experience in this area, but bear in mind that anyone can set up an Umbrella company, so be warned.
Avoid Umbrella companies that make sweeping claims about having agreed a dispensation with HMRC without the need for supporting receipts. Also take claims of “HMRC approved” Umbrellas with a pinch of salt. (HMRC do not approve individual Umbrella companies)
