If you are in the process of choosing an umbrella company, or if you are not happy with your current scheme and want to move on, here are some tips from the Contract Eye team, based on our experiences as former contractors, and of running contractor news sites over the past 12 years:

Fees

How much does the umbrella scheme charge to use its services? Fees are usually quoted for weekly or monthly payments. Do note that some companies quote net fees rather than gross. This means that the net fees are quoted after you have claimed tax relief on the cost. Make sure you compare like with like.

Take Home Pay

All PAYE umbrella companies must deduct income tax and national insurance contributions at source. Given that only genuine expenses can be reclaimed legitimately, the actual take home pay you receive from an umbrella should not vary a great deal between umbrella schemes. The main difference between providers will be in the fees they charge.

Compliance

What type of compliance and audit checks has the company undergone? Some examples of auditors include Professional Passport, major accountancy firms (e.g. KPMG), and Qdos.

Benefits

What extra benefits does the scheme provide? Examples include access to a pension scheme, business insurance cover (e.g. professional indemnity), child care vouchers, gym membership, and free CHAPS payments.

How established is the firm?

How much experience has the umbrella company had in your industry sector (e.g. IT)? How many contractors does it have on its books, and how long has it been operating?

Recommendations

The best way to find a decent umbrella company is to seek recommendations from people you know. You may also want to spend some time on umbrella company comparison sites, which can provide more information on umbrella compliance, and any extra benefits a scheme may provide.

Some Leading Providers

We have worked with a number of leading umbrella companies via our contracting news sites for many years, including:

• Contractor Umbrella Ltd (01206 713 680).
• Helix Management Limited (0845 004 6679) – offshore solution
• Umbrella Paraplus (0844 846 0444).
• Parasol (0800 583 6000).

To get in touch with us, simply email info@contracteye.co.uk.