Top tips for choosing an umbrella company

If you are a contractor, you may be considering using the services of an umbrella company in order to get a handle on your tax and paperwork commitments. So, just how do you go about choosing such a company?

There are so many to choose from, including PayStream, but there are some tips you might wish to keep in mind that could make the process of finding a company to take care of your paperwork a little easier.

The first is experience. You might want to establish how long a particular umbrella company has been operating for, as this could give you some indication as to how happy its customers are with the payroll it has been providing.

It makes sense that the longer a company has been in operation, the more trustworthy and reliable it may be.

Next, you will want to ascertain that the umbrella company you are considering is fully compliant with all aspects of employment law and that it is in regular contact with HM Revenue and Customs.

As a freelancer or contractor, you may like to be completely sure that you are operating within the confines of tax law – and taking advantage of a provider that regularly reviews legislation pertaining to tax and National Insurance could give you peace of mind.

Although it is vital that you comply with all of the relevant legislation, you may also be keen to maximise your pay as much as possible – and considering all of the hard work you put in, there is nothing wrong with that.

In light of this, an umbrella company that can help you to increase your take-home pay as much as possible by claiming tax relief on allowable expenses is likely to appeal. Indeed, this support could see you receiving the best possible net pay.

These are benefits you may not have known you were entitled to had it not been for an umbrella company.

Prompt invoicing is another key consideration, as this can reduce the time you have to wait for your money to come in after each job. Ideally, you should look for a company that promises to invoice your client no more than one working day after receiving the necessary information from you.

Insurance is a further positive point to keep an eye out for. An umbrella company that offers comprehensive cover, such as professional indemnity, might stand out from the crowd as you will know you are fully protected.

Once you have narrowed down your list of choices, you should focus more on the level of customer service offered.

Ease of use is an important point to consider so that your umbrella company can quickly slot into your life as a contractor. For instance, an online portal through which you can claim expenses or input your timesheets within a matter of minutes could make the whole process very appealing.

However, when it comes to your work and income, it is important you also have the benefit of human contact. That's why umbrella companies, such as PayStream will assign you a dedicated account manager to deal with any queries you may have is one that is well worth considering.

By keeping all of the above criteria in mind, you can be sure you will soon have paired up with the umbrella company that is best for you.