3 signs it’s time to switch umbrella companies
If you think all umbrella companies are the same, you are actually partly correct. For an umbrella company to be legitimate, they have to stick to a strict legal framework and comply with all the dull employment and tax legislation. That’s not to say some aren’t better than others.
If this was a Cosmo quiz we’d be asking “Are you stuck in a loveless marriage with your umbrella company?”
Here are 3 signs it could be time to divorce your umbrella company and get into bed with someone else!
Your relationship with your umbrella company is based on trust. You need to feel you rely on the people who are looking after you and your pay.
Poor service can come in the form of slow responsiveness, apathetic or dismissive staff and handling things badly when things go wrong.
Great service means friendly, personal interactions with people who make you feel valued and listened to, as well as being professional and efficient.
If you are frustrated with the level of service you are getting from your umbrella company, it could be time to move on.
Red flag practices
When is an umbrella company not an umbrella company? Sometimes tax avoidance scheme providers call themselves umbrella companies to put a veil of legitimacy over their operations.
Typically, these companies will deduct PAYE tax on a small portion of your income, then call the rest something else and treat it as non-taxable income.
This is called disguised remuneration and could result in you ending up with a massive tax bill.
Look out for promises of higher take-home pay and terms like loan, grant, profit share and annuities. If you come across any of these, or just get a bad vibe that your umbrella company isn’t doing things properly, it’s time to walk.
Poor value for money
Like all service businesses, umbrella companies do compete on price but that doesn’t mean that the cheapest, ie. the one taking the lowest margin, is necessarily the best value. Firstly, make sure that there aren’t any charges (hidden or otherwise) for things like same-day payments, processing holiday payments and business insurances. These are integral to the value for money you are getting from your umbrella company.
Next, look at any other benefits or “perks” they provide. These could be rewards or additional services – such as mortgage advice, flexible pensions or healthcare. These extras not only add value, but also show how much the umbrella company values you.
If you feel you aren’t getting value for money, it may be time to shop around.
Switch to Liquid Friday
There are many reasons that could make you want to switch to another umbrella and naturally, we want that to be us!
If you are not getting the service and value you expect or deserve from your umbrella company, we are here to give you an all round better experience. Check out our reviews on Trustpilot
We’ve built our reputation on great service, transparency and flexibility. You will also find a host of additional benefits – shopping discounts, mortgage advice and a 24/7 GP service to name a few.
Here is what you need to do:
- Inform your existing umbrella company
- Request a P45
- Inform your recruitment agency
- Get in touch with us to sign up fast
- It’s payday!
If you are joining us for the first time, we look forward to welcoming you to the home of umbrella. And if you are coming back to us – who says exes can’t be friends!