We’ve placed you into your perfect locum social work role and now you need to choose an umbrella provider. The amount of Umbrella companies available can make looking for one that is right for you very confusing. Umbrella providers also can have a number of negative press around them, which does not make the process any simpler. Below is a guide covering everything you need to know about what an umbrella company is, how to search for one and what to look out for:
How do umbrella companies work?
Simply put, an Umbrella company employs temporary workers on behalf of a recruitment agency, the recruitment agency then provides the services of the locum worker to their clients. Once we place you into a role, and you are interested in working through an Umbrella provider, you will need to tell us which one you would like to work with. We will provide your chosen umbrella company with timesheets of the hours you have worked each week, and then the Umbrella company will then deduct their fees, tax as well as your national insurance contributions and pay you directly. You will receive a payslip with all the details and a breakdown including your gross pay and take-home pay.
Why are they beneficial to locum staff?
Umbrella companies can assist locum staff in getting paid on time, as well as taking care of all the ‘admin’ concerned when working in a temporary position, such as timesheets and expenses. Umbrella companies also usually often provide benefits for staff that choose to work with them, standard added benefits include a pension scheme, holiday pay and maternity pay, that locums would not usually receive with a temporary position. Some umbrellas also offer healthcare opt-ins, welfare services and help with mortgage applications.
Where to start?
There are many umbrella companies out there to choose from, you can simply look at some reliable contractor websites or forums which provide lists of accredited providers, alternatively, your recruitment agency will usually provide you with a list of providers that they have checked to be accredited and trustworthy. Each provider will have different benefits so it all depends on what will best suit you and your situation, remember, you can also ask your consultant for guidance on where to start if you’re stuck, they will always be there to help you!
Make sure the provider is accredited!
The most important rule when choosing an Umbrella provider is making sure that they are accredited by either Professional Passport or the FCSA. The easiest way to check this is by using the checker tools on their respective websites to search the name of the umbrella company you want to work with, if the company comes up that means it’s accredited and legitimate. HMRC have reported that some companies are being cloned, so ensure it is the right company by checking that the details match up with the details shown on the Professional Passport or the FCSA website. You can directly contact the umbrella company through the accreditation websites. See the links below to take you straight these checker tools:
Professional passport: https://www.professionalpassport.com/Approved-Providers/Approved-Providers
FCSA: https://fcsa.org.uk/fcsa-accredited-members/
Some red flags to look out for:
- The biggest red flag is if the company is not accredited by one of the two accreditations above.
- If any of your gross pay is described as ‘non-taxable’. This may indicate that the company is involved in a tax avoidance scheme.
- If your projected earnings look too good to be true compared to other providers, they probably are and there is a scam involved.
- If the company asks you to sign an annuity, loan or other agreement involving a third party or a non-taxable element.
If you are currently working with an umbrella company, you can check whether you are at risk of tax avoidance using HMRCs interactive risk checker. They also have plenty of guidance all about working through an umbrella company, which can answer any questions that you may still have, click here to view it.
We’ve placed you into your perfect locum social work role and now you need to choose an umbrella provider. The amount of Umbrella companies available can make looking for one that is right for you very confusing. Umbrella providers also can have a number of negative press around them, which does not make the process any simpler. Below is a guide covering everything you need to know about what an umbrella company is, how to search for one and what to look out for:
How do umbrella companies work?
Simply put, an Umbrella company employs temporary workers on behalf of a recruitment agency, the recruitment agency then provides the services of the locum worker to their clients. Once we place you into a role, and you are interested in working through an Umbrella provider, you will need to tell us which one you would like to work with. We will provide your chosen umbrella company with timesheets of the hours you have worked each week, and then the Umbrella company will then deduct their fees, tax as well as your national insurance contributions and pay you directly. You will receive a payslip with all the details and a breakdown including your gross pay and take-home pay.
Why are they beneficial to locum staff?
Umbrella companies can assist locum staff in getting paid on time, as well as taking care of all the ‘admin’ concerned when working in a temporary position, such as timesheets and expenses. Umbrella companies also usually often provide benefits for staff that choose to work with them, standard added benefits include a pension scheme, holiday pay and maternity pay, that locums would not usually receive with a temporary position. Some umbrellas also offer healthcare opt-ins, welfare services and help with mortgage applications.
Where to start?
There are many umbrella companies out there to choose from, you can simply look at some reliable contractor websites or forums which provide lists of accredited providers, alternatively, your recruitment agency will usually provide you with a list of providers that they have checked to be accredited and trustworthy. Each provider will have different benefits so it all depends on what will best suit you and your situation, remember, you can also ask your consultant for guidance on where to start if you’re stuck, they will always be there to help you!
Make sure the provider is accredited!
The most important rule when choosing an Umbrella provider is making sure that they are accredited by either Professional Passport or the FCSA. The easiest way to check this is by using the checker tools on their respective websites to search the name of the umbrella company you want to work with, if the company comes up that means it’s accredited and legitimate. HMRC have reported that some companies are being cloned, so ensure it is the right company by checking that the details match up with the details shown on the Professional Passport or the FCSA website. You can directly contact the umbrella company through the accreditation websites. See the links below to take you straight these checker tools:
Professional passport: https://www.professionalpassport.com/Approved-Providers/Approved-Providers
FCSA: https://fcsa.org.uk/fcsa-accredited-members/
Some red flags to look out for:
- The biggest red flag is if the company is not accredited by one of the two accreditations above.
- If any of your gross pay is described as ‘non-taxable’. This may indicate that the company is involved in a tax avoidance scheme.
- If your projected earnings look too good to be true compared to other providers, they probably are and there is a scam involved.
- If the company asks you to sign an annuity, loan or other agreement involving a third party or a non-taxable element.
If you are currently working with an umbrella company, you can check whether you are at risk of tax avoidance using HMRCs interactive risk checker. They also have plenty of guidance all about working through an umbrella company, which can answer any questions that you may still have, click here to view it.