Steps required to joining an umbrella company

Hi, my names Alex and I work for Danbro - Contractor Accoutants, as part of the marketing team. In this article I will be outlining the standard steps a contractor must take when they receive their first contract offer and how to set themselves up on a new umbrella scheme.

Firstly you will need to have a firm job offer from an agent before you can join most umbrella schemes. Most agencies will have a Preferred Supplier List (PSL) for which umbrella services they recommend and use for their clients. If not you will be able to select whichever one appeals to you. My advice is shop around; in such a competitive market place all umbrella companies will be competing for your business and trying to give you the best deal possible. Most good umbrella companies will provide you with an online Umbrella Company Calculator which will allow you to input your wage & expenses and then provide you with a breakdown of how they can maximise your earnings.

Next step is to contact the umbrella company who will walk you through it step by step. A good umbrella company will offer a simplified, hassle free solution tailored to your contracting needs. The process is actually very simple when handled through an umbrella and they should have you set up within 24 hours.

Once set up with an umbrella scheme you will then need to inform your contact at your agency which you are using so they can prepare and send out your working contract with the umbrella companies name on it. Some umbrella companies will do this for you, and handle all the communication with your agency contact. Once received, your chosen umbrella company will then set up this contract and post it back out to the contractor to approve and countersign also.

The Umbrella Company will ask for banking details so they can pay your wage straight into your bank account after processing. Most will offer different methods of payments, such as BACS and Faster Pay, giving you the option of how fast you want the money going into your bank account, subject to an additional fee.

A P45 from your past employer will be required by your umbrella company to get you set up with the correct tax code. If a P45 isn't available a P46 form will be supplied for you to complete and provide you with the correct tax code to be paid.

Finally, as part of getting set up on the new umbrella scheme, many umbrella companies will have an additional contract of their own that they will require you to complete and sign. This contract will specify the terms and conditions of the umbrella service, such as expense policies.

Hope this short article provides you with a little overview as to how to go about contracting and good luck with your fist contract.

For more information contact Danbro Contractor Accountant on:
Head Office: 01253 600140
London Office: 0207 836 84000
Manchester Office: 0161 238 4918
or visit www.danbro.co.uk