Check if they’re a genuine employer

Compliant umbrella companies provide contractors with what’s called an overarching contract of employment. This gives you access to all the rights and benefits associated with permanent workers, including sick pay, holiday pay, and maternity/paternity pay.

Take-home pay

When considering an umbrella company, it’s crucial that you choose one that’s above board and fully compliant. Make the mistake of operating through a tax avoidance scheme and you could be left with a huge tax bill.

Check their payment and expenses policy

It’s also a good idea to thoroughly research an umbrella company’s payment processing system. Most compliant providers will run several payrolls each day, ensuring you get your money as quickly as possible. The last thing you need after a hard day’s work is to waste time chasing payments.

Margin structure

Umbrella companies retain a margin for the services they provide. This is usually retained each time pay is processed and will vary depending on which umbrella company you choose. It is important that you are aware of the margin being retained and this should be displayed clearly on your pay statement.

Compliance

For freelancers and contractors, tax compliance can be a confusing arena – but one that must be taken seriously. Compliant umbrella companies are there to do the hard work for you, making the correct tax deductions so that you don’t have to worry. It’s essential, then, that you choose a trusted and fully compliant umbrella company.