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Simple & Helpful 'How to...' Articles for Contractors

We've got everything a contractor needs to know - you've got a fantastic & free place to help you get the most out of contracting...and certainly the most out of your umbrella company!

From starting out as a contractor to finding the best umbrella company, IR35, claiming business expenses, paperwork & FAQs - look no further!

Contractor Professional Relationships

It's important to handle your professional relationships well, as a freelance contractor. Here are a few tips for the professional ones.

The Recruitment Agency

Recruitment agents are vital for a freelance contractor to sustain a successful contracting career. The recruitment agent will be largely responsible for finding your first then on-going contract roles.

The recruitment agency has a relationship with the client, and is responsible for finding suitable contractors to complete specific tasks the client may have. It is the recruitment agent that advises & negotiates the contract role's hourly/daily rate with the client for each job.

Your recruitment agency will have a contractual relationship with your umbrella company, in which you are the person named to fulfil the role. Further information can be found in our Introduction to an Umbrella Company guide. 

The Client

You do not have a direct contractual relationship with your client as an individual. Your client has a contractual relationship with your umbrella company in which you are the named person to fulfil the role. Check out our advice about the umbrella company service in 10 Questions to ask an Umbrella Company.

Though your contractual relationship is one-step removed, you obviously have an on-going working relationship with your client - which is the most important of all.

The Umbrella Company

When you register for the services of an umbrella company service, you actually become an employee of your umbrella company. The umbrella company will have a contractual relationship with your recruitment agency and your client - in which you are the named person to fulfil the role.

Once you have done the work how do you get paid?

  1. Send your time sheet to the umbrella company
  2. That enables the umbrella company to invoice your recruitment
  3. In turn the recruitment agency will invoice the client
  4. The client will pay your recruitment agency
  5. The recruitment agency will pay your umbrella company
  6. Your umbrella company will pay you.

For further information see our article on how umbrella companies benefit contractors.

it contractor payment through a contractor umbrella company

 

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