There are many benefits why you should be an umbrella company worker in the UK. Here are the top reasons why you should be one:
1. Expenses are Tax-Free
You can benefit from tax relief for various expenses if you work as a temporary assignment umbrella company worker. These expenses include subsistence, travel, and overnight stay (hotels/bed and breakfasts) they accumulate in finishing their task. Contractors who travel far distances or have to work away from home largely benefit from these as claims are proportional to the distance traveled.
2. Timesheet and Expense Claims Processing
Umbrella company workers benefit from working in an umbrella company as the said institution collates the number of hours worked and expenses that are incurred during the conduct of the task. These can be processed on a daily, weekly, or monthly basis. The umbrella company worker obtains reimbursement with all the required tax deductions through the verification of receipts and invoices collated by the company.
3. Recipient of Statutory requirements
An umbrella company worker who has a permanent working status can benefit from statutory sick pay (SSP) and statutory maternity pay (SMP).
4. Group Pension Beneficiary
An umbrella company worker can gain access to the Umbrella Group Pension Scheme as well as the Pensions Auto Enrolment.
5. Competitive Pay Scale
Umbrella company workers, both temporary and permanent, obtain a competitive pay scale. The Agency Workers Regulations specified the terms as employees working at the same location.
6. Contractor Mortgages
Umbrella company workers might face challenges in obtaining mortgages because of the nature of their employment status. There are loan companies that do not cater to the needs of umbrella company workers.
Most umbrella companies offer assistance with contractor mortgages that help an umbrella company worker in securing a mortgage.
7. Assurance of wage payment
Umbrella company workers are assured of payment for the number of hours worked for even with non-payment by the client or agency.
8. Assistance in job-hunting
Umbrella company workers are assisted by their company during the period where they seek new assignments. These include writing resumes, answering interviews, reimbursement of costs incurred while searching for a new assignment, paying between tasks, and using office resources while seeking new tasks.
9. Less-hassle compared to working with a limited company
An individual working for his own limited company often has the highest returns. However, an umbrella company worker does not have to be concerned with IR35, does not have to pay for insurance or bookkeeping, and does not need to manage subordinates.
Working as an umbrella company worker has many benefits. Why not be one today?
If you need more information about being an umbrella company worker, you may contact us.