How to choose the right Umbrella Company for you

If you’re just starting out in your contracting career, your first step will likely be choosing an Umbrella Company to contract under. But with so many options, how can you tell which one is right for you? In this blog, we’ll cover what you should be looking for when evaluating Umbrella Companies.

Check for FCSA Accreditation

The Freelancer and Contractor Services Association (FCSA) is the UK’s leading membership body dedicated to maintaining and promoting compliance and transparency in the self-employed labour market.

If an Umbrella Company holds up-to-date FCSA accreditation, this proves they have passed the FCSA’s rigorous compliance assessment, and you can be certain that they are meeting the highest standards.

At SG Umbrella, we’re proud to be FCSA accredited and you can view our accreditation page here.

Reputation and Reviews

Getting the authentic views of contractors who have used a specific Umbrella Company is a great way to assess their quality. Speak to your fellow contractors or search the company’s name on a contractor forum to see what people think about them.

If you need to get the overall sense of an Umbrella Company, you can do so through their review pages on sites such as Google and Trustpilot. By reading the real experiences of past and present contractors, you can get a good idea of what the company is like and whether they’re right for you.

If you’re curious about what our clients have to say about us, take a look at our Google and Trustpilot pages.

Offering a Genuine Service

A genuine Umbrella Company should handle PAYE, income tax, and National Insurance Contributions at source. They should also ensure you receive the employment rights you’re entitled to, such as maternity and paternity pay, sickness and holiday pay, and pension contributions.

If an Umbrella Company isn’t genuine and fails to provide a contract of employment, you may not be given the entitlements you deserve.

Compare Pricing

You should always enquire about what’s included in the price. Some Umbrellas may have joining/leaving fees, a minimum contract length or other hidden costs that can dilute what initially seemed to be a great deal. If an Umbrella Company truly cares about their clients and the service they provide, they shouldn’t be ambushing clients with extra charges. When deciding on a company, make sure they will provide the level of service you expect and ensure that you’re happy with the value proposition they’re offering.

Keep in mind that the amounts of income tax, PAYE, and National Insurance Contributions are all decided by HMRC and will be the same for all genuine Umbrella Companies. Any company that claims to be able to increase your take home pay far beyond the level of other companies, is likely not operating legitimately. For more information, you can read our guide on how to spot a non-compliant Umbrella Company.

Payment and Expenses

It’s important that you know how often you’ll receive your payment. The majority of reputable Umbrella Companies will usually process payment a minimum of once a week, meaning you’ll get your money as soon as possible.

You should also become familiar with their expenses system. They should advise you on keeping expenses records in case of an HMRC investigation, and only accept legitimate claims.

Customer-Focused Service

As a busy contractor, you deserve an Umbrella Company that handles your payroll accurately and on time. On top of that, your Umbrella’s team should be able to answer any questions or concerns you may have and offer advice when needed. Quick, effective communication should be a top priority when looking for an Umbrella Company as it removes the headache of trying to chase them up when you need something.

Opportunities to Grow

For many contractors, the long-term plan is to work through a Limited Company, due to the tax benefits they offer. Whether you’re using an Umbrella Company for a specific contract or just starting out in your contracting career with ambitions to grow, you should consider the option of setting up a Limited Company in the future and whether it’s right for you. At SG, we offer both Umbrella Services and Limited Company Accounting, allowing you to easily switch over whenever you need.

How SG Umbrella Can Help You

At SG Umbrella, we’re FCSA accredited and run by experienced contractor accountants, meaning you’re getting the very best service. This includes:

• Fast, reliable payments
• Fixed margin with no hidden fees
• Pay into your preferred pension provider at no extra cost
• Switch over to our Limited Company accounting services at any time
• Expert advice and support

For more information about our services and how we can support your contracting career, get in touch with a member of our team today.