How to choose your umbrella company

Introduction

When it comes to contracting, one of the key decisions you'll make is choosing the right umbrella company. This choice can significantly impact your professional experience and financial wellbeing. At Compare the Umbrella, we prioritize contractor-reviewed and agency-approved umbrella companies, ensuring a standard of quality and reliability. Here’s a comprehensive guide to help you make an informed decision.

Understanding weekly fees

Fees are a critical factor. Umbrella companies typically charge weekly fees ranging from £12 to £32. While it might be tempting to go for the cheapest option, it’s important to consider what's included in this fee. Lower fees might not always equate to better value if important services are excluded.

Evaluating insurance cover

Insurance cover varies widely among umbrella companies. Some provide extensive coverage, while others offer the bare minimum. Assess your personal and professional needs to determine what level of insurance cover is essential for you.

The importance of customer service

Excellent customer service, especially efficient payroll processing, can make a significant difference in your contracting experience. Look for companies known for their responsiveness and reliability in handling financial transactions.

Leveraging contractor reviews

One of the most insightful resources are reviews from other contractors. Check the company’s ratings and read through experiences of those who’ve already navigated the process. Real-world feedback can be invaluable in highlighting the strengths and weaknesses of an umbrella company.

Other essential considerations

Company compliance

We at Compare the Umbrella emphasize contractor-reviewed and agency-approved companies, which typically indicates a history of industry compliance and good practice.

Beware of marketing ploys

Be cautious of companies advertising unusually high take-home pay percentages. Such claims may involve unrealistic expense calculations or irrelevant compliance statements, like those regarding IR35.

Be aware of extra costs

Some companies charge joining or exit fees. It’s crucial to understand all potential costs upfront. Always read the fine print and seek clarification when needed.

Payment schedule

This can vary – weekly, fortnightly, or monthly. Your choice should align with your financial planning and the billing terms of your agency or clients.

Recruitment agency partnerships

Many agencies work exclusively with certain umbrella companies. Starting with your agency’s preferred partners can be a helpful guide.

Pensions

If you're considering a pension scheme, investigate which umbrella companies offer this option and understand the terms involved.

In conclusion, choosing an umbrella company requires careful consideration of various factors. It’s not just about the fees but also the overall value and reliability of the service provided. By thoroughly evaluating each aspect, you can ensure that your choice aligns with your professional needs and goals. Remember, the right umbrella company can be a valuable partner in your contracting journey.