3 Tips for Picking the Right Umbrella Company
An umbrella company is an organisation that self-employed contractors can join rather than setting up their own limited company. Furthermore it’s a convenient option as it will ease the workload for the company. An example would be all income tax payments are taken care of, so there is no need to submit a tax return to HMRC.
Tax relief on any expenses is not obtainable in PAYE. One of the differences and additional benefits is that the Umbrella Company will make the necessary deductions. They calculate tax relief on allowable expenses, such as food and travel. This results in an increase in take home pay.
Finding the right umbrella company can be difficult. Here are some tips you can use so you can find the company that best fits you.
- Check The Companies Background
Unfortunately, some umbrella companies have been caught out for being illegitimate. They run tax avoidance schemes which put the employers who chose to hire these companies in trouble with HMRC. Situations like these can have you owing the tax man thousands of pounds therefore doing your research when choosing an umbrella company is important.
- Ensure you have an understanding of the costs
Find out the actual amount you will be paying each week or month because not all umbrella companies are open about their price structures. Before enrolling in a contractor umbrella programme, find out if the fees are all-inclusive or if there are additional costs associated with processing expenses, filling out tax forms, and other such services.
- Ensure you are given a full employment contract.
The business must provide you with a complete employment contract and grant you all the legal privileges and advantages to which UK employees are entitled. Before signing up, confirm that a full employment contract is being given.
How We Can Help?
If you need umbrella services Happie Group are here to help. We are 100% HRMC compliant so you can be rest assured. You will receive your payslips on time every time. Get in contact today to get setup!