What Umbrella Companies Do for Temporary Workers in the UK
If you’re a temporary worker in the UK, you’ve probably heard of umbrella companies. But what are they, and what do they do?
PoM has taken a look at umbrella companies in detail. He’ll explain what they are, what they do, and the benefits of using one. He’ll also provide some tips on how to choose the right umbrella company for your needs.
So, what is an umbrella company?
An umbrella company is a business that employs temporary workers. They act as an intermediary between the worker and the client, and they take care of all the admin and payroll. This can be a huge relief for temporary workers, as it means they don’t have to worry about things like tax and National Insurance.
What do umbrella companies do?
Umbrella companies do a number of things for temporary workers. They:
- Employ the worker
- Pay the worker’s wages
- Deduct tax and National Insurance
- Provide holiday pay
- Provide sick pay
- Provide other benefits, such as pension contributions
Why use an umbrella company?
There are a number of reasons why temporary workers might choose to use an umbrella company. Some of the benefits include:
- Convenience: Umbrella companies take care of all the admin and payroll, so you don’t have to. This can save you a lot of time and hassle.
- Security: Umbrella companies are your employer so they have the same obligations to you as any other employer. Similarly you have the same rights as any other employee.
- Flexibility: Umbrella companies can still offer a lot of flexibility, so you can choose the assignments that work best for you.
- Benefits: Many umbrella companies offer additional benefits, such as discount portals
How to choose an umbrella company
If you’re thinking about using an umbrella company, it’s important to choose the right one for you. Here are a few things to keep in mind when choosing an umbrella company:
- Reputation: Make sure you choose an umbrella company that has a good reputation. You can find reviews of umbrella companies online.
- Fees: Umbrella companies charge fees, so make sure you compare the fees of different companies before you choose one.
- Benefits: Some umbrella companies offer more benefits than others. Make sure you choose a company that offers the benefits that are important to you.
- Customer service: Make sure you choose a company with good customer service. You should be able to get in touch with someone if you have any questions or problems.
Conclusion
Umbrella companies can offer a number of benefits for temporary workers. If you’re thinking about using an umbrella company, be sure to choose the right one for you. Do your research and compare different companies before you make a decision.
Key Takeaways
- An umbrella company is a business that employs temporary workers.
- Umbrella companies take care of all the admin and payroll for temporary workers.
- There are a number of benefits to using an umbrella company, including convenience, security, flexibility, and benefits.
- When choosing an umbrella company, it’s important to consider the company’s reputation, fees, benefits, and customer service.