However, a lot of umbrella companies will tell contractors the same thing, that they are HMRC & IR35 compliant, they have the best service in the industry and that they will provide you with the most take home pay. Once you ask for certain documents, such as an employment contract, professional insurances, and their HMRC approved expenses policy – this will help contractors to attain whether the umbrella company is credible.
The 'better' umbrella companies will be able to provide you with the documents that you request and will be happy to meet with you face to face to answer your questions.
You will come across a diverse range of umbrella companies such as:
ContractorUmbrella; Giant Strongbox; Parasol IT; Pulse Umbrella; Springboard; Liberty Bishop; Oxygen 360; Parasol Group; Orange Genie; Atlantic umbrella; Crystal umbrella; Danbro; Plan IT; Alternet; Bedouin; Paymatters; Churchill Knight; Excellium Umbrella; Zeva; & Danbro.
There are a few things that you can look out for by yourself to determine the credibility of the umbrella company:
Does the umbrella company have one telephone line for everything?
Does the umbrella company welcome meetings at their offices?
Does the umbrella company use a business email address or hotmail account?
What guarantees does the umbrella company make about processing your payroll correctly and on time, every time?
What level of insurances does the umbrella company offers for contractors?
How flexible is the umbrella company with their payroll?
Does the umbrella company charge you a joining fee, a fee for leaving, charge you when on holiday or fix you in for a certain period?
Does the umbrella company make additional charges for raising invoices, issuing payslips, P60's, reference letters, etc.
How long does it take to for the umbrella company to answer the phone?
Do you know where the umbrella company is based and the credentials of the company?
What type of service does the umbrella company provide?
It is always advisable to choose an umbrella company if they have been recommend by a contractor that has previously used their services.
