Have you been wondering about how an umbrella company works? In this article you would get an idea on how an umbrella company works.
The first steps after you have decided to work for an umbrella company is to choose an umbrella company that suits your requirement. The next step is to sign up with the umbrella company. When you sign up with an umbrella company, you become the employee of the umbrella company. As the first step you would be asked to provide your P45 or P46 forms. You also need to submit your administrative details. This might include your National insurance number, or bank account details as well as your personal details. Your part ends with this step.
Your profile would be taken over by the umbrella company and the company would start looking for a contract role that would suit your profile. The umbrella company would then sign your contract with any of the agency or Client Company. You then have to sign a contract or agreement with the umbrella company. You would be starting to work for the client company. Depending the company’s cycle, you would have to submit your timesheet on a weekly or monthly basis. Normally you will be asked to submit your timesheets at the portal which would be online.
The umbrella company will then submit your invoice to the client company on your behalf. You will also be asked to submit the expenses that you might have incurred along with your timesheets. Once the umbrella company invoices your timesheet, the client would pay the umbrella company. You would be receiving your wages from the umbrella company. Your payment would be done directly to your bank account. However, the payment that you receive would be your invoiced amount minus the tax, umbrella fees and other deductions. Your expenses that you claim could also be submitted along with your timesheets.
You could claim your expenses that are incurred by you during your work hours. If you have any questions pertaining to the expenses that you could claim, you can go through the policy document of the umbrella company. Most of the time, these expenses include the travel expenses, reimbursements, accommodation and meal expenses. The take home pay that you get from the umbrella company is almost similar and does not differ much from one Umbrella Company to another. The main difference would be with the fees that the umbrella company charges. You would have to take a look at this fee before you choose the company and sign up.
Another aspect that you might want to consider is the customer service that is offered by the umbrella company. This is quite difficult to quantify but at the same time very important as well. The umbrella company should not only disburse your pay and allowances on time but also provide you with the basic entitlements such as leave policy. All your queries should be closed within the short span of time. You should be comfortable to access them.