What is Umbrella?
What is Umbrella?
There can often be confusion around what an umbrella service actually is. In short, an umbrella service gives contractors a more consistent and secure alternative employment status.
Contractors employed through an umbrella service company essentially become PAYE employees of that company, with full statutory employment rights. The umbrella company deducts all the necessary taxes and should tell you how you can benefit from the tax relief available for genuine business expenses that may be incurred.
What to look for in an Umbrella company
If you're looking for an umbrella company make sure you are encouraged to claim holiday pay and look to see that they have processes in place that ensure regular on-time payments. Ask if there's any flexibility with late timesheets and, whether they offer online access that allows you to view personal information easily, complete and submit your timesheets and also access key documents.
There are other benefits to look out for too such as pension auto-enrolment, after the third month of employment. Also, check to see that you are covered by the umbrella service's insurances such as Public and Employers' Liability, Professional Indemnity and Temporary Working Personal Injuy policies.
Check they can service your multiple contractors and keep you updated on any changes to legislation.
Finally, make sure that you speak with the company before registering. The staff should be friendly and helpful and want to make your experience as hassle free as possible.
A proven track record
If you are a contractor working in the telecoms, construction, overhead powerlines, utilities and civil engineering sectors and are looking for a new Umbrella service or want to change provider, please call one of Earn Extra's knowledgeable team members on 01484 713147 or email email@example.com.
Find out more about Earn Extra's Umbrella service here.