Viewing How Much Should you Pay for an Umbrella Company? from 4 Basics of an Umbrella Company - Umbrella Company - The Basics Written by Contractor Supermarket

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How Much Should you Pay for an Umbrella Company?

 

Marcus Glover, Managing Director of Springboard Umbrella Company, offers impartial advice to contractors regarding the cost of using an umbrella company:

There isn't a hard and fast amount that we recommend you should pay for your umbrella company. There's a wide range of prices that umbrella companies will charge their contractors, anything from £40 to well over £200 a month.

Make sure you know exactly what your umbrella company charges before you register with them, and always ask if the umbrella company has any extra charges. These sort of questions will help contractors avoid costly mistakes in the future.

No one begrudges paying for a service, as long as there is value in it. At around £100 a month for the services of an umbrella company, you'll be getting an umbrella company with a fully qualified back-office team who are paid simply to get you paid. And at about the cost of a drink each day for an umbrella company that's not too bad.

On the whole, umbrella companies offer great value at an affordable price - just make sure you're with the right umbrella company whose price, and service levels, you are happy with.

 

How do Umbrella Companies Charge?

 

Umbrella companies charge for their services in a number of different ways. Some umbrella companies charge a sliding scale other umbrella companies will charge a flat monthly fee and some charge per invoice raised.

Don't go for an umbrella company pricing structure that is a percentage of your contract income. Some contractor umbrella companies still work this way and it can disadvantage the contractor. Chose an umbrella company that charges a fixed fee price.

It's not all about price, reminds Glover:

When considering which umbrella company to register with, remember service levels and customer satisfaction are just as important as the price. A contractor should try and check out the reputation of an umbrella company before joining, and not rely too heavily on what their own website says.

A great way of doing this is to see what other contractors are saying about the umbrella company, and how one umbrella company ranks compared to all the others.

 

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written on2010-08-21 23:18:00

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