| When choosing an umbrella company to use for your | | | | When looking at a perspective umbrella company, find |
| freelance business, there are a number of things to | | | | out how quick their payment is. Some will take longer |
| keep in mind. Many companies use flashy advertising | | | | than others to submit invoices and send out payments, |
| gimmicks which can be misleading and they may even | | | | and you will wait longer to be paid. Ask if they hold |
| make false promises, so it's important to get as much | | | | money for holiday pay, sick pay, or any other reasons. |
| information about the company as you can. | | | | If this is something you want, great, but if not, you |
| First of all, many companies advertise themselves as | | | | should know before you sign on. |
| IR35 compliant, but in reality, with the changes in the | | | | Make sure they have good customer service. It's great |
| laws, all firms are. A company's compliance is | | | | that they have a quick online system, but how do they |
| immaterial since the only option anymore is to be paid | | | | do when you need to talk to a live person for |
| via PAYE, yet many companies use it as a marketing | | | | assistance? If you call with a problem, how long will it |
| tool. One sign that a company is not trustworthy is if | | | | take them to get you the help you need? Find out if |
| they claim that you can submit expenses without | | | | you will have to deal with whoever answers the |
| receipts. That may be true, but the HMRC will likely | | | | phone or if you will have a designated manager for |
| investigate the company eventually, and you will be | | | | your business. |
| held accountable for any expenses you cannot prove. | | | | Ask the umbrella company for client testimonials and |
| Carefully examine the company's fee structure. While | | | | references. Word of mouth is always a powerful |
| most charge a flat fee for services provided, some | | | | statement about a company, so ask colleagues and |
| charge rates that are income based. If you are a high | | | | friends for referrals. More than likely, they will have |
| earner, you will pay more for the same services as | | | | plenty to tell you about both good and bad umbrella |
| someone who earns less. If your income increases, so | | | | companies, so use their experiences to your |
| will the rate you pay, so it is best to make sure the | | | | advantage. Knowing what to look for in an umbrella |
| firm charges a set amount monthly. Watch out for set | | | | company and asking the right questions will help you |
| up or exit fees, and make sure there are no penalties | | | | find one that's right for you. |
| for terminating your contract. | | | | |