Umbrella companies have been at the forefront of business since the turn of the millennium, when IR35 went on the statute books and companies wanted to reduce the stress of handling finances.
However, there is still an aura of mystery and uncertainty surrounding Umbrella. To help you make the right decision, we’ve highlighted a list of key benefits we offer.
1. All financial responsibilities are on us
We understand the challenges of working in recruitment – balancing new clients and finding opportunities for candidates takes up most of your day. This leaves you with little time to handle financial responsibilities like payroll.This is where Umbrella companies, like us, can help. Simply put, we become the employer for your candidate and take care of all financial and HR responsibilities. This includes timesheets, invoices and ensuring payroll is processed accurately and compliantly.
All daily tasks involving a contractor’s payment, including wage, sick pay, maternity/paternity pay, and National Insurance calculations will all be taken care of through us, freeing up more of your time to place candidates.
2. No risk, no worries
It’s easy to let things get on top of you and sometimes mistakes do happen, which could unfortunately have financial repercussions.
By appointing us to handle your payroll, you are not only free of the financial responsibilities, but also the risks of penalties from HMRC. We’ll handle all relevant checks, including IR35 and Home Office & Right to Work. We also produce a report every 3 months to ensure 100% compliance, constantly informing you about our progress so you know we aren’t messing you around.
Back in 2012, the government introduced a Pension Auto Enrolment scheme as a way of combating the population not saving for their retirement. If you are an employee of an organisation, you’re 22 and over (and below the state pension age), earn more than £10,000 a year and primarily work in the UK, then you will automatically be enrolled on to the scheme.
If you are working under an umbrella employer, like Optimum Pay Group, this means that you are an employee, and you will automatically be enrolled in the scheme and will see this clearly displayed on your payslip.
4. Continuity of Employment
Historically, it’s always been more difficult for the self-employed to source external finance. For example, getting a mortgage is generally more challenging for those not in permanent employment. However, continuity of employment with an umbrella company changes this.
When you join an umbrella company, like Optimum Pay Group, we become your employer. So, in short, using an umbrella company could help you get a mortgage, grow your credit rating or borrow funds from a bank because banks may lend favourably as you have a consistent employment history.
5. What you see is what you get
Umbrella companies have gained a somewhat negative reputation thanks to other operations out there, however, these are often not fully compliant and will find loopholes to avoid correct tax contributions to individual tax and National Insurance to HMRC.
We, on the other hand, are completely transparent - what you see is what you get. Our aim is to provide a service that puts your journey at the forefront, complete with full 360 service, where all sales staff are fully trained to answer any questions you have. We see everyone as an individual and we’re here to help.
If you want to find out more, you can head over to our Services page where you’ll find an overview of everything we provide. You can also drop us an email or give us a call.