How to properly shop around for an umbrella company deal

Everyone likes a bargain! As a result, you should absolutely look for an attractive deal from an umbrella company. After all – the umbrella market is pretty competitive due to the rising number of providers. And as a result, there are some super offers out there! Keep reading and we’ll help you find an umbrella company deal that’ll help you save money.

A higher take home pay doesn’t necessarily mean a better umbrella company deal

Remember, umbrella companies will process your payroll in the same way because they have to in order to operate compliantly with HMRC rules and regulations (PAYE). Therefore, don’t be fooled if one provider is offering you way more net salary than another. There is every chance they’ve manipulated their quote somehow. For example, some cheeky brollies include a fixed amount for expenses, even though there is pretty much no chance you’ll be eligible to claim them.

The margin is the only thing that’ll alter your pay retention between umbrella companies

To find an excellent umbrella company deal – you should be drawn to a company offering a competitively low margin. After all, the margin is the only thing that should impact your take home pay. You’ll take home a few quid more each week if you choose a company with a £15 weekly margin compared to an umbrella that has a £30 weekly margin. Other than that – there isn’t anything that’ll alter the amount of pay you retain because they all operate PAYE.

A compliant umbrella company is far better value than a tax avoidance scheme!

Tax avoidance schemes are evil things that’ll help you retain more of your money. Sounds great right? Wrong! HMRC is doing everything in its power to close tax avoidance schemes, and to punish those who have engaged with them. Saving a few pennies now may sound tempting, but trust us – you’ll almost certainly face an HMRC tax investigation in the future, and the repercussions could be life-changing. Please – don’t use a tax avoidance scheme. Instead, collate a list of compliant umbrella companies (FCSA accredited umbrella companies) and choose one of them to be your payroll provider.

Determining what makes an umbrella company “value for money”

Technically speaking, umbrellas all work in the same way. They receive your pay from your client or agency, make the deductions, and then pay you your net salary. However, like all industries, while the fundamentals are the same between providers, the quality of service will undoubtedly differ. This raises the question – is it worth paying a slightly higher margin for a more reliable service? We’d say yes.

We recommend that you choose an umbrella company with good online reviews, FCSA accreditation, and added extras as part of their service. And, have a look and see if there are any special offers for new clients. Sometimes, an umbrella will offer a reduced margin for the first month – for example.

Finding an umbrella company deal – a quick checklist

Okay, so we’ve determined that the only thing that should alter the amount of pay you retain is the margin an umbrella charges for their service. Therefore, here is a list of the things you should look out for when deciding if an umbrella company deal is worth going ahead with:

  • FCSA Accreditation – only use a compliant umbrella company. Engaging with scandalous tax avoidance schemes could ruin your life. Please, don’t ever be tempted to use them, and always carry out your own due diligence when choosing an umbrella company to manage your payroll.
  • Margin – the lower the margin, the higher your pay retention (although it doesn’t make that much of a difference if we’re talking about margins between £15 and £30 per week).
  • Service – Are you able to find any online reviews that suggest the umbrella company has excellent customer service?
  • Little extras – are there any “little extras” included in their service, such as Same Day Faster Payments, unlimited support, a cool mobile app, and so on?
  • Special offers – is there a special offer on at the moment, such as a reduced margin, or welcome “gift”?

The easy way to find the best umbrella company deal

Have you checked out our top 10 umbrella companies? Not only are they all FCSA accredited, but some of them are offering some amazing deals for new customers. Take a look for yourself!

If you would prefer to take more of a “back seat” approach – why not schedule a call with a top 10 umbrella company instead? All you need to do is complete the short form on our request a call back page, and we’ll pass your information onto a top 10 umbrella company. They’ll be able to run through your circumstances with you, and we’ll let them know that you came via umbrellacompanies.org.uk. That way – you’re sure to be offered an umbrella company deal that is second to none!

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