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What Can The Best Umbrella Companies Do For You?

John Jennings discusses the fundamental difference between the very best umbrella companies and the others, focussing in on the benefits that can be realised through choosing the right organisation for you.


(Tuesday, June 11th, 2013) United Kingdom - John Jennings tells of how as “an independent contractor there are many reasons why a relationship should be consummated with an umbrella company. The best umbrella companies have widespread experience gained over the years and have been able to fine-tune their services to provide enhanced support for the individual.”

Host John Jennings says: “One of the main benefits of working with such a company is the fact that they undoubtedly keep up to date with the various changes in legislation and employment law. A case in point is the recent modification to pension legislation enacted by the UK government last October. This modification provided the long-term protection of the individual by mandating their inclusion in a pension scheme. So long as the employee is paid by a PAYE method, is 22 years old or more and earns a minimum of £ 8105 then they must be enrolled into the pension scheme by the employer. This of course directly affects an independent contractor who is working with an umbrella company, because such a company is the employer.”

At this point John Jennings goes on to say: “Why is this good for the independent contractor? Often retirement seems so far off that many of us, especially if we are independent, do not give the subject as much attention as we should.”

“Consequently, when engaged with an umbrella company this aspect will now be taken care of in a situation which will see the contractor, the employer – the umbrella company – and the government pay a certain amount into the pension scheme on an ongoing basis. Those who may already have taken care of their pension needs need not worry however as there will be a time period during which it is possible to opt out of the auto enrolment scheme.”

John then conveys the idea behind how: “Umbrella companies handle a lot more than just pension matters of course. One of the primary goals of such a company is to relieve the contractor of the burden of dealing with piles of paperwork. In addition to processing timesheets and expenses such a company will raise invoices to the client organisations and ensure that these invoices are paid on time.”

John Jennings of in conclusion says: “There’s been a lot of publicity in the media in recent months regarding certain umbrella companies, their compliance with laws and regulations – or rather the lack of. While government agencies do not essentially regulate or recognise the industry right now this is likely to change, but this update will not affect the best umbrella companies, who go out of their way to ensure that they comply at all times. This must be seen as a fundamental principle here as the contractor must be in a position to trust the umbrella organisation and especially so when it comes to regulation compliance.”

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