Published on August 14, 2013
The benefits of an umbrella business for the self-employed or contractors are diverse and really rather complex: retaining the services of an umbrella company is a way for them to be certain that their necessary tax and sundry other obligations are met in good order and that they are covered by the necessary business insurance. Despite the fact that an umbrella company will charge for their work, they offer a great many advantages and services for this charge. The customer of the umbrella firm or self-employed worker will in effect be employed by the umbrella organization and therefore will be paid a wage from them and have all their tax and other necessary obligations fulfilled, such that they can focus solely on their work and not worry about the technical side of things. A full and comprehensive contract of employment should be signed with an umbrella corporation, listing each of the benefits and rules of the work that is agreed upon. The employee will also be given the invaluable aid of full customer service line and assistance for their clients. It is important to select the best umbrella firm for the particular type of business and service you offer, as there will be a great many to choose among. Employees should be careful to choose one which is properly established and comes recommended by its existing workers and employees, and one that boasts a strong credit rating. They must also avoid those which charge entry fees, ask for you to sign up for a pre-agreed period, or charge exit penalties; as they should be free to begin and leave the agreement at whim, as required by their situation. Sole traders, the self-employed and freelancers are all drawn to working for themselves and working to their preferred schedule, but they tend to be put off by official requirements and red tape. This is where an umbrella company is invaluable; they will handle every last detail of tax and licensing, accounting and marketing, correspondence and dozens of other administration duties. Irrespective of what fees the umbrella levies the employee will be more than reimbursed for, as he or she would need to find an accountant and other experts to take care of various parts of their business, and this is all covered by the undertakings of the umbrella organization. All that is necessary is for the contractor to submit time sheets and work orders, in addition to expenses and receipts, and everything will be taken care of on their behalf: they will be able to concentrate on their real work whilst being assured that their legal obligations are met and their accounts are up to date.