We often hear from contractors who have been advised to use an umbrella company and are confused about why.
When it comes to choosing how you are paid this should be a decision that you, the worker make. If you are asking yourself ‘do I have to use an umbrella company?’ it is important to bear in mind that, while you should absolutely never be forced to use an umbrella company, there are many benefits.
You will have to ensure you are compliant and paying the appropriate tax and this may be why an agency has suggested this approach to being paid. There are lots of factors to consider and your recruiter or a good umbrella company should be able to present you with the options that are appropriate for you. If you are unsure which route to take the Exchequer Unsure Guide might help.
So why is your recruitment agency proposing that you use Exchequer Solutions or another umbrella organisation?
There are a number of reasons why recruitment agencies like to work with us.
- We take care of a lot of the administration associated with paying their workers
- Often agencies will try and encourage workers to use a named umbrella company. They might explain that the company is on their preferred supplier list. We would always recommend you check out the company yourself, after all you’ll be trusting them with your pay! However most reputable agencies will have a preferred supplier list and the umbrella companies on that list should have been selected for their professionalism, compliance, reliability and customer service so they are often a good place to start your umbrella search.
- Recruitment agencies understand that an umbrella service can offer some great benefits for workers taking temporary contracts with them.
If you are wondering whether to use an umbrella company here are some of the benefits.
- The security of being legally treated as an employee
- Employee benefits such as holiday pay, maternity and paternity leave, sickness pay etc
- Claiming allowable business expenses, see our expenses policy for more details.
- Flexibility, you can complete different temporary assignments and remain employed under one contract of employment
- With Exchequer Solutions you will have a dedicated Account Manager to deal with any queries you may have over your pay, tax and expenses
At Exchequer Solutions we believe umbrella employees should choose us because of the service we offer to them, not because they are told they have to. We are here to aid workers from a status, administration and financial perspective – when they are sourcing work.
If you are currently making a choice then we would be happy to speak to you about your circumstances and how our umbrella service might work for you.
