Benefits of umbrella companies for contractors

Becoming a contractor can be a very challenging time, as there are many things to think about. However, using the services of an umbrella company could help contractors and freelancers make the transition easier to handle. Read on to find out why.

By using an umbrella service provider, you get someone else to calculate and pay your tax and national insurance contributions for each contract you take on, so you can concentrate on the day job.

Every time you start a new assignment, your umbrella company will contact the recruitment business or client to set up the invoicing and payment process, meaning you only have to worry about being paid by one company. The umbrella company will also help you chase any overdue payments.

All these things can become time-consuming when you are not used to them so having someone else take care of them for you means that you can free up hours in your day.

Furthermore, as an employee of the umbrella company, you are entitled to the normal employment benefits such as statutory sick pay or maternity pay.

Best of all, you may even be able to boost your take-home pay by claiming tax relief on your allowable expenses.

You might find it particularly useful to have someone else deal with the financial aspect of things, as this means you can maintain a good relationship with your client.

Therefore, you won't let it affect the type of service you provide or the quality of the work that you do and you can concentrate on offering what you agreed, while letting someone else handle the monetary aspect of the job.

By doing this, you can maintain your reputation with the client. Working as a contractor, having a good reputation is likely to be key in helping you expand your clientele and boost the amount of contracts you receive, so having the time to maintain your high quality of work is imperative.

Additionally, if you are just starting up as a contractor having an umbrella company handle your financial obligations is sure to reduce the amount of stress you have to deal with.

Enjoying a more relaxed approach to your work could be an attractive prospect for a lot of people, and will enable you to enjoy more free time, which you could either spend boosting the amount of work you take on or relaxing with your friends and family.

Another benefit of hiring the services of an umbrella company is that with all good reputable providers you will be able to receive comprehensive insurance, including £2 million worth of professional indemnity cover.

This will allow you to carry on with your work, knowing you have protection in place in the event that a client makes a claim against you. Having this cover will give you confidence to fulfil your contracting duties free from the stress of facing legal problems in the future.