Most Contractors get paid through an Umbrella Company because they typically offer high returns, full compliance, the least administration and easiest process. We have a network of Umbrella Companies all across the globe if you need one for your next contract. Contact us if you need an umbrella company for your next contract.
What is an Umbrella Company?
An Umbrella acts as the employer or payroll company between a client / recruitment agency and the contractor. They invoice the agency or client and make payment to the contractor. They deduct the necessary taxes and social security obligations as well as process expenses and tax deductions which the contractor may be entitled to. They will hold the necessary insurances and licenses to perform this practice (normally including Professional Indemnity Insurance and Public Liability Insurance). They charge a fee (normally a set monthly fee or % of each invoice).
We have a short video explanation of what an umbrella company is(link is external)
Why use an Umbrella Company?
The Umbrella Company provides the Contractor with a number of benefits:
– They will typically process payments very quickly (within 24 hours of receipt) ensuring good cashflow.
– They generally make full use of any legal loopholes and provisions to which the contractor is entitled.
– They can provide benefits in terms of group purchasing, using their large number of “employees” to negotiate advantageous rates on services that contractors commonly use like car leases, mortgages, mobile phone contracts, computers, professional subscriptions, insurance, gym membership.
– A good umbrella company will use a high level of automation in their process meaning administration for the contractor is extremly low. You may just have to fill in your timesheets, watch the money hit your bank account and then receive your payslips and tax reporting electronically!
– Some Umbrella Companies can also provide work permits and business visas for foreign nationals who need immigration assistance to perform their contract. We specialise in dealing with these Umbrella Companies – if you need help with sponsorship or a work visa for your next contract please contact us.
Additionally Umbrella Companies give the agency & end client the reassurance they need that the contractor is being paid legally and reliably.
How to choose an Umbrella Company
In markets like the UK and Australia where Umbrella Companies are well established their services are fairly similar.
The common questions you want to ask yourself (and your umbrella company) are:
How much risk do you want?
Is the company reliable?
Will your recruitment agency / end client agree to pay your proposed umbrella company (if they are located overseas this may be a problem!)?
Do you need / want access to all your money straight away?
Do you want to maximise contributions to superannuation, pensions or other retirement / wealth management schemes?
How long do you plan to be in your contract and location?
Do you want some funds to go to family members or dependents?
If you want us to help you choose an umbrella company (it’s totally FREE!)
- Fill in our form. It takes 30 seconds to give your basic details.
- We will respond by email giving you advice straight away and possibly asking further questions to make sure its a good match.
- You can ask us any questions you like (still FREE!) and we’ll talk through your options with you.
- If you like any of the options we suggest then we can introduce you to the providers.
We don’t charge you anything for our services.