Your Basic Guide On Umbrella company

Employing the services of an umbrella team has become quite popular among freelancers and contractors. The concept of an umbrella service may be relatively new which leaves the question; what is an umbrella and how do they work? Keep on reading and find out more!

So, what is an umbrella team or company? They provide service for freelancers and contractors who have existing projects wherein they take care of admin tasks on their behalf. This is very beneficial for contractors since they do not have to deal with the hassle and extra work of setting up a limited company.

What Are The Tasks Of An Umbrella? 

  1. The contractor or freelancer will acquire a project or assignment from the end client and they will then contact an umbrella team from the agency’s PSL or Preferred Supplier List.
  2. The end client will then draft a contract with the umbrella and both parties will sign the said contract.
  3. The contractor will then fill out the form and then register officially with the umbrella.
  4. The contractor will make sure to complete the timesheets and submit them to get them signed and approved.
  5. The contractor will send the completed timesheet to the end client or recruitment agency.
  6. The contractor will also have to submit the completed timesheet to the umbrella team.
  7. The Umbrella company on their part will send an invoice to the end client based on the timesheet submitted by the contractor.
  8. The end client will then pay the umbrella.
  9. The umbrella will process the payment for the contractor and will make the necessary deductions such as Apprenticeship Levy, holiday pay, NICs or National Insurance Contributions and pension or student loan if applicable.
  10. The umbrella will then send a payslip to the contractor with the full details including the deductions.

What Are The Qualities Of A Good Umbrella Team? 

Experience And Reputation

The reputation of a company is a good indicator of what it can offer and if they are indeed capable of providing such service. The best way to check their credibility is to search online for reviews about their company. Choose an umbrella team that is trustworthy and has an impressive track record and experience. You can also get valid information from referrals.

Expenses And Payment Policies

Always check the company’s payment processing system since this will give you a good idea of how the company handles their tasks. The company must be transparent and must always be prompt when processing the payment for the contractors.

User-friendly Portal

The umbrella must have an easy system so that the contractor does not have to go through the hassle of getting their payment. Their system must be efficient and their online portal must also be easy to navigate. In that way, contractors will be able to submit their timesheets with no glitches so they can get paid on time.

No Hidden Fees Or High Rates

The umbrella must set a reasonable fee for their services and they should not have any other hidden fees that can take more money out of the contractor’s pay.

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