Independent contractors are often times introduced to umbrella companies like PAYE through the agency they are working for.  You should remember that sometimes these companies are partners of the agency and receive referral commissions for recommending certain companies.  In fact, more times than not, these umbrella companies are not going to be the best choice for you and it is recommended to do your own research to find the best one for your success.   During this article, we are going to go over a few steps that you can take to make sure you find the best umbrella company for what you need.

 

You have taken the first step by moving into the world of being a freelance or self-employed worker and you have also decided that working with an umbrella PAYE company is something you would rather do, other than setting up a limited company.  The only step you have left is actually deciding which umbrella company you would like to work with.  This is not necessarily an easy decision, as choosing the right umbrella company to work with can make a huge difference in the success of your business and becoming an independent contractor.

 

The first thing you will want to do, as you are thinking about working with an umbrella company is ask some questions.  Some of the questions might be, how long have they been in business?  What are the companies rating?  Has it gotten an established contractor client base with good professional referrals?  Making sure to check the company's ratings is a good choice, as a company with a strong rating will be much less likely to collapse and this will give you a piece of mind. Check out http://www.encyclopedia.com/topic/Employee_Compensation.aspx to read about employee compensation.

 

The next thing you want to do is watch out for those companies who claim to have special expense dispersion or process non receipted expenses.  This is because those companies who claim this are simply breaking the law, as HM Revenue and Customs insist that all expense claims are backed up with a receipt and all umbrella companies must follow this law.

 

The third step to take is to make sure you are paying an umbrella company to benefit you, which means it should offer you a guaranteed level of customer service that includes help and support when you need it.  It should really also be able to answer any questions you may have.