I have to Register with an Umbrella Company

Numbers a Mystery?

If you're new to dealing with an umbrella company it can be a daunting task to ring them up. It's not always easy for an experienced contractor either!

Tax, forms, admin, red-tape, numbers, spreadsheets...ARRRGH!

1. What should you expect?
2. What questions are you going to be asked?
3. What questions should you be asking?

For many ‘numbers' are a mystery - always have been and always will be - and having to hold a conversation with a stranger on the subject is like sitting a vital exam which you know you stand little chance of passing.

• You feel lost and uncomfortable, always finding a reason to put off that call to an umbrella company. But that call has to be made.

Don't Panic!

First of all, don't worry! There are at least a hundred different umbrella companies out there, all chasing your custom. If you don't like, or just simply don't understand, the first one you've contacted then just call another.

• Contractor Supermarket lists all umbrella companies you could use, together with their telephone numbers and an unbiased company review, which should point you in the right direction.
• Approved umbrella companies offer that extra peace of mind.

When you first call an umbrella company, you will be put through to their ‘registration' team.

An individual who should know everything about the process and be able to answer every, and any, question you may have.

I've been told I need an umbrella company. I don't know why!

• Don't be afraid to say something as simple as 'I need an umbrella company, but I don't know why!' that's all you need say for a good one to be able to put your mind at rest.
• The registration person at the umbrella company should be able to explain in clear and accurate terms the service on offer, even to someone who has never come across PAYE or employer's NI in their life!
• It's their job to explain their services to you, if they don't, or plainly can't, then move on.

Do not forget you are the customer, it is your money; ensure you understand what you're being told. If you don't, then don't be afraid to ask them to explain it again - as many times as necessary for you to fully understand.

Check List

Check List of the basic things you will need to know before you make the call:

1. Your hourly or daily rate.
2. Start and end dates of your contract.
3. How you will be travelling to your contract each day.
4. What you expect to spend on food and drink each day.

What you want to know from your umbrella company representative:

1. What service do they offer; can they confirm it is a pure PAYE Umbrella company?
2. Exactly how do you interact with them on a daily basis?
3. Do you become their employee; with all employee rights like sick pay and maternity pay?
4. How often do they run their payroll, is it daily, weekly or monthly?
5. When do they need your timesheet in by?
6. What sort of expenses do they allow; do they require receipts?
7. What documents of yours do they require eg, P45, passport, tax-code?
8. What levels of insurance cover do they include in their fee?
9. What do they charge for their service?
10. What ‘extras' are you expected to pay for?

Though much of this information is freely available for Contractor Supermarket visitors (see each umbrella company's review page), your umbrella company should still volunteer this information to you.

I hate the hard sell. Shut up and let me go away and think about it!

• In addition, like any good customer focused company, you want them to be polite, friendly and not continually pestering you to ‘sign-up' before you've had a chance to really consider your options.

Advice

• The umbrella company service should be explained in accurate but simple terms (if you don't understand then don't sign-up).
• They should have the courtesy not to use industry jargon.
• They should not encourage you to claim for expenses that you will not incur (that's breaking the law).
• They should treat you with respect.
• They should remember that you are the paying customer, not them.

Finally, and a point which can't be stressed too much - you are the customer.

The customer is king. Spend your money with an umbrella company who works hard to earn it. Not with one who thinks they're doing you them a favour.

I am the customer. I am KING!

 1. What is contracting and how can I become a contractor?
 2. You've got the contract, what now?
 3. What is an umbrella company?
 4. Umbrella company myths
 5. Umbrella company FAQs
 6. Umbrella company paperwork
 7. Umbrella company expenses
 8. Calling an umbrella company
 9. 10 questions to ask your umbrella company
10. IR35
11. Paying Employer's National Insurance
12. Choosing an umbrella company
13. Umbrella company alternatives