If you work as a freelancer, or for yourself, chances are you’ll have heard of an umbrella company. This is a type of business that helps freelancers manage their taxes and other financial issues. They do this by taking on responsibility for paying your National Insurance contributions and offering other services related to tax and pension regulations. The idea behind these companies is that they can help freelancers save money on their tax bills while also providing peace of mind when it comes to dealing with HMRC (Her Majesty’s Revenue & Customs).

Check You’re On The Right Scheme

The next step is to check that you are on the right scheme. There are several UK-based umbrella companies out there, and not all of them are equal. Before signing up with any particular company, make sure you do your research and find one with the following qualities:

• Check they have the right insurance cover for your business. If anything happens to a client, then it’s important that you have strong protection in place – this can be anything from theft to litigation costs or property damage. The last thing you want as a freelancer is for your personal finances to suffer as a result of something beyond your control.

• Make sure they’ve been audited by an independent auditor and passed with flying colors. This ensures their credibility is rock solid when it comes time for renewals; if there’s ever any doubt about whether or not they’re legitimate then simply ask yourself whether or not they would pass such rigorous inspection!

• Have they got good track record? Check their reviews online before committing yourself – don’t just take our word for it; we’re biased! Having said that though…our fees aren’t bad either.

Make Sure You Understand The Fees

Before you sign a contract with an Umbrella company, make sure you understand the fees associated with it. This can vary from one company to another, so it’s important to figure out exactly how they work and what they will cost you.

There are many different types of fees that can be charged by an umbrella company:

• Administrative fee – this covers the cost of running your account;
• Premium allocation charge – this is used to pay for premiums on behalf of your insureds; and/or
• Investment performance charge – this helps cover investments made by the umbrella insurance provider.

Check Your Umbrella Company Is Looking After Your Interests

If you’re signed up with an umbrella company, it’s important to make sure they are doing their job. It’s a good idea to check that they are:

• paying your invoices on time
• looking after your tax affairs correctly and keeping you up-to-date with what is happening in this area
• giving you the correct advice

Be Sure That Your Umbrella Company Provides 24/7 Client Support

As an independent contractor, you’re likely to work unsociable hours. You may find yourself on a tight deadline and need help at one in the morning or on a Sunday night. This can be an issue if your umbrella company is unable to provide support for you during these times. It’s vital that you make sure that your umbrella company offers 24/7 client support so that you have someone to turn to when things go wrong.