Which one should I choose
Best Umbrella Company… Who should I choose?
You have an upcoming assignment and you’ve been instructed by your agency that you will be getting paid via an Umbrella Company but are unsure exactly what an Umbrella Company is. New Red Planet, an FCSA accredited payroll provider, will explain what an umbrella company is, how it can benefit you as a contractor, and why you should choose an FCSA Accredited Umbrella for your on-payroll assignments.
In summary, an umbrella company is the main alternative to creating your own limited company as a contractor. The primary responsibilities are to supply you with employment status (and related statutory rights) while on assignment and to manage all your tax obligations to HMRC for your work. Umbrella companies are becoming more prominent in the contractor marketplace since the changes to IR35 legislation in the Public Sector in 2017 and in the Private Sector in 2021, which saw many contractors moving to on-payroll assignments, the majority of which are via an umbrella company.
What to look for when choosing:
- Every provider should process your payment in the same way
- Don’t be fooled by umbrellas that offer you higher take-home pay. We all abide by the same tax laws so take-home pay should be the same
- Compliant Accredited umbrella companies will have your best interest at heart
- The FCSA is the UK’s most recognised industry body dedicated to ensuring the supply chain of temporary workers is compliant and ethical
- Great customer service and track record of compliance
- What benefits do the umbrella company provide compared to others Same Day
- Faster Payments
- Referral Rewards
- Unlimited Support
- A phone line you can call and actually speak to someone on
- Introductory offers
New Red Planet and FCSA
New Red Planet & FCSA
New Red Planet’s accreditation comes from FCSA (The Freelancer & Contractor Services Association), The UK’s leading membership body dedicated to raising standards and promoting compliance for the temporary labour market.
FCSA’s “Code of Compliance” is recognised as the gold standard in the industry, and its members go through the most stringent audit processes on an annual basis.
- The FCSA Code of Compliance has been developed by Ernst & Young, in consultation with HMRC, and is available to the public on the FCSA website.
- All FCSA Accredited Members are tested annually against the FCSA Codes of Compliance by independent, carefully selected assessors.
- The assessors are top-tier, regulated accountants and solicitors bound by their own professional standards and code of conduct and are independent of the FCSA.
- The FCSA Codes of Compliance are continually updated to reflect current legislation.
- Non-compliance by FCSA Accredited Members results in the suspension or termination of FCSA Accredited Membership.
- No FCSA Accredited Member is allowed to operate Offshore Schemes, Loan Schemes, Trusts, Managed Services Companies Schemes, Pay-day-by-Pay-day models, or similar.
Conclusion
Remember – first things first – pick a compliant umbrella company like New Red Planet and rest assured you and your tax affairs will be managed correctly and in accordance with all UK Tax and Employment laws.
If you are looking for a reliable, best-in-practice umbrella company that prides itself on its client-focused approach, contact New Red Planet today:
T: 0161 713 1730 E: info@newredplanet.com W: www.newredplanet.com
FCSA
NRP – New Red Planet – FCSA Member