HOW DO I CHOOSE AN UMBRELLA COMPANY?

Factors to consider

Choosing the right umbrella company for your circumstances is of upmost importance. At Contractor Circle, we prioritise contractor and agency approved umbrella companies. 

This article covers some of the factors that you may wish to consider when selecting an Umbrella company: 

Weekly fees

Fees are a critical factor. Umbrella companies typically charge weekly fees ranging from £12 to £35. 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.

Be vigilant when it comes to 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.

Insurance cover

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

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.

Company compliance

Here at Contractor Circle, we value contractor and agency approved companies, which typically indicates a history of industry compliance and good practice.

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 have a list of approved or preferred umbrella companies. Make sure to do your research about any requirements that your agency may have. 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.

Conclusion

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.

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