Q: How do they work?
Using an umbrella company essentially means that you as ‘the contractor’ become an employee of the umbrella company. As part of the process you submit timesheets to the Barker Ross Group, we will in turn invoice the end client for the work that you have carried out. You are then paid by the umbrella company as a PAYE employee - less the umbrella fee.
Q: What are the benefits to you?
- Umbrella companies carry many advantages for contractors including:
- They are easy to use. Contractors using umbrella companies simply submit their time sheets and expense claims through Barker Ross Group who send the information to the umbrella company and wait to be paid.
- All tax and NI is calculated and deducted by the umbrella company prior to you receiving your money. This means you do not need to worry about calculating your tax.
- Umbrella companies are suitable for those contractors who have both long and short-term contracts who want minimal input.
- Umbrella companies offer suitable solutions for contractors at all salary rates.
- They offer the perfect solution for those who are unsure about contracting or are simply contracting as an ‘in between’ job as there is minimum input required.
- Aside from the timesheets and expenses claims there is very little other paperwork to be completed.
- Other benefits may be offered in the service such as insurance & training.
- As an employee of an umbrella company you are also usually able to claim basic expenses, this is based on you being able to provide valid original receipts.
Q: Which Umbrella company is right for you?
When you are looking for an Umbrella Company there are a number of things that you should bear in mind: Essentially, Umbrella Companies are all governed by the Inland Revenue. This means that your earnings with one cannot be any higher than they would be with another; the only variance should be the fees that the Umbrella Company charges. A reputable Umbrella Company should not charge you according to what you earn. There is no more work involved, for the Umbrella Company, if you earn £50 per day or £500 per day. If you are quoted a percentage of your earnings as a fee you should ensure, through careful calculation that you will still be paying a reasonable amount.
When working through Barker Ross Group it is in our best interest to ensure that you are happy and well paid in the position and Client to which we supply you. A big part of this satisfaction is knowing that you will be getting paid appropriately, therefore it is imperative that our Consultants are educated to the degree that they can provide you with the most up-to-date information on working through an Umbrella Company.
As an Employment Business it is illegal for us to force you to go through one particular Umbrella Provider, our role is simply to assist. As a Company though, it is essential that we allow you only to go through a provider which stands up to our strict financial guidelines which, in the long-term safeguard you and your money. Therefore we hold a list of “Approved Umbrella Providers” which most reputable Umbrella Companies will be on. Going through an Umbrella Company that isn’t financially tested can mean that potentially you could be left with a large Tax debt or left out of pocket if the Umbrella Company experiences any financial difficulty.
Click here below to find our approved Umbrella providers.
The services offered by these providers under the Barker Ross Group PSL is for Umbrella purposes only and does not include any other service. With that said, Barker Ross Group does not accept responsibility for any losses, damages, etc. should you choose a third party to engage in another form composite, managed service or accountancy solution.
Barker Ross Group does not endorse the benefits of operating through an umbrella provider or encourage contactors to work via any particular provider on this PSL. The contractor has the full right to decide whether they work PAYE (via an Umbrella on this PSL) or through your own Limited Company. Please note that Barker Ross Group's representatives are not able to provide guidance; if you do require this please seek independent advice.
We do not accept or assume any responsibility for any actions, claims, proceedings, demands, losses, costs, damages or any other consequences arising from reliance upon any services provided by any entity, direct or indirectly. This includes compliance checking. Whilst the Barker Ross Group has undertaken a compliance audit, utilising an approved third party, it is still the responsibility of the Contractor when required to seek independent advisors to carry out your own checks.
The PSL is reviewed on an annual basis with the next review period being in April of each year, although we do reserve the right to change the PSL from time to time. This includes when a provider does not pass through our compliance checks or does not adhere to FCSA standards. Until then no other Umbrella provider will be engaged with by the Barker Ross Group.