Umbrella Companies : A Short Guide
Choosing the right umbrella company for your business can be nerve-racking, especially with so many from which to choose. Asking the right questions and knowing what to look for can make the task much simpler. Knowing about their fees, services, accessibility, and reputation are good places to start. A little time and research will save you money and frustration in the long run.
Reputable companies will generally offer a clear fee arrangement, and weekly, bi-weekly, or monthly billing. It may be advisable to choose a company that charges a set fee rather than one that is income based, especially if your income varies quite a bit or if you are a high earner. This could eat up a sizable chunk of your income. Also, make sure there are no fees to sign up or fees to leave the company.
Spend some time looking into companies. There is a good chance that you know people who can recommend one company over another; learn from their experiences. It won’t be difficult to find out which firms to watch out for. You can also ask the company about their current clients and ask for testimonials. A good sign of stability is length of time in business and good references.
When asking friends for recommendations, ask specifically about customer service; does the company have a website to upload or enter timesheets and expenses? Ask friends and the potential company about their response time to questions and problems. If you have a schedule to keep, you don’t need to be waiting around to hear back from the firm. It’s also a good idea to find a company that offers to refund your money if you are not happy with their services.
Before you pick a company, find out how they pay. If they pay using C.H.A.P.S or FPS, you will get paid the same day. If they use Bacs, you may have to wait several days before you get paid. The promptness of payment can be a big issue when choosing the right umbrella company.
Last, but certainly not least, make sure the company is a member of a professional body like Professional Passport, SPA, or AEMC so you know they are compliant. Most umbrella companies provide professional indemnity, employer’s liability, and public liability insurance as a part of their service, but ask to be sure. If they can service your needs and provide these assurances, they should be a good match for your business.
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