Umbrella Company ChecklistThere are many umbrella companies but not all may be able to provide you with the documents required that will confirm whether they are government compliant umbrella company. Below is a checklist to facilitate you selecting the umbrella company.
HMRC approved employment contract – the umbrella company will need to be able to provide you with your own over arching contract upon signing up; so ask for a copy before you commit.
HMRC approved expenses dispensation – this clarifies the expense policy and gives you opportunity to claim the legitimate business expenses against your taxable income.
Umbrella insurances - You will need to be covered by Professional Indemnity, Public Liability and Employers' Liability insurances protect you against any liability whilst contracting at your client site.
Audit Process - Who and when checks that the umbrella company is complying with HMRC regulations.
Transparency - The world of Umbrellas is a dilemma; key to establishing this trust in the Umbrella Company you choose is transparency. Do they explain all processes in fine detail?
Below generic questions you should ask to an Umbrella Company
- How much do they charge, and is it a fully inclusive price?
- Can you claim expenses and do you need receipts?
- What insurances are included within the price?
- How quickly will you be paid after sending in your timesheet?
- Will you have a named account manager?
- Is there a complaint procedure?
- What are their opening hours?
- Is there a leaving charge?
- What happens when you want to leave?
Asking these questions should give you an idea of what it will be like working with them. Your relationship with your umbrella company is important, so don't make your decision hastily.