16

May 12

Get the best from your IT umbrella company

By Umbrella Companies on May 16, 2012

When choosing an IT umbrella company there will be a few things that you should think about before you make your decision. The first thing you should work out is what is most important to you from an umbrella company.

Perhaps you want to join up with an umbrella company to make your work life a little easier, having your tax paid by the company and receiving exactly what you should be getting straight into your bank. In this case you should look up a few umbrella companies and see how they work their pay schedule. All umbrella companies will take out tax and an admin fee before your pay reaches you but they may do this in different ways and the admin fee is likely to be different with each company. Some umbrella companies have a straight admin fee which doesn’t change however much you earn. If you are looking to earn as much as possible and hope that your income will raise, one admin fee for every paycheque may work for you. This means that when you aren’t earning very much you may be charged more, but will reap the benefits as your income increases. Other umbrella companies have a fee which rises with what you earn. This can be helpful if you aren’t earning very much, as you won’t have to give so much to the company, but you may struggle and feel that you aren’t earning enough as your pay increases.

For other people, the most important part of working with an umbrella company will be the customer service element. Companies which work exclusively online will only have a reduced customer service usually and you may find that you can only reach a call centre for some enquiries, or have to send an email. Companies which have dedicated teams and even offices may work best for you in this case as you can be sure of reaching someone if you run into trouble.

Try to find the best umbrella companies in your area of expertise by comparing them on comparison websites and looking at reviews from other people who have worked with them in the past. This way you can be sure that the company you choose will be ideally suited to your needs, and this should take some of the pressure out of choosing one company to work with.

Posted in News, UK Umbrella Companies |

14

May 12

How easy is it to work for a limited company or umbrella company?

By Umbrella Companies on May 14, 2012

When you first make the decision to start working as a contractor or freelancer, you then need to work out whether you are going to register as a sole trader, limited company or start working for an umbrella company. The range of choices available can be confusing and it is difficult to know which option to go for.

With many people, just working out how difficult it would be to register as any of these options puts them off getting onto it straight away but it really is quite simple. Becoming a sole trader is the simplest option as it does not require a complicated signing up process or paying any registration fees. You simply need to register with HMRC as a sole trader and you can do this through their website. There isn’t much paperwork to do and it should happen relatively quickly.

If you do not want to be wholly responsible for the financial side of your business though, in order to protect yourself should something go wrong, you will want to register with a limited company or umbrella company.

A limited company can easily just be you working on your own, but registers the business as a separate entity. This means that if your business does run into any financial trouble, it will take the hit rather than you yourself. This can save you from becoming bankrupt or having your own credit file damaged if your company runs into trouble. To register a limited company you need to file with Companies House. The process involves filling out minimal paperwork and you will pay between £18 and £40 to register. You can get help online to make the process simpler and you should be registered in a relatively quick time after this.

The simplest way to work for yourself and not have to worry about the financial aspect is to register with one of the umbrella companies listed online. These companies handle your tax and other financial issues for you, for a small fee and mean you are technically working for them rather than for yourself. Again, this helps you out if you run into difficulty, with the added bonus that most have customer service teams to help. To register with a PAYE umbrella company you are best doing a search online and filling out all the information on the company’s own website. This will be a quick and easy process although you should research each company carefully in advance to make sure you have chosen the best one for you.

Posted in News |

11

May 12

Will I have to pitch for jobs as part of an umbrella company for contractors?

By Umbrella Companies on May 11, 2012

Although it is well known that an umbrella company for contractors is designed to make the freelancing process easier, a lot of contractors still aren’t entirely sure what a PAYE umbrella company does.

Basically, an umbrella company is there to handle all of the admin and financial stresses that come with working for yourself. Being self employed means that generally there is no one there to handle things such as tax, and make sure you get paid the right amount on time, and umbrella companies are there to help with that. They work as a middle-man, taking payment from your clients for you, taking out tax and admin fees and then putting the money directly into your bank at a pre-decided time every week/month. This means you have a pay day, just as though you were still working in full time permanent employment, meaning you are better able to budget for the month and also that you will not need to worry about filling in the tax return at the end of the year, or running into trouble because you haven’t paid enough tax. You can use an umbrella company calculator to work out how much you will be paid in advance, and will find that most umbrella companies have a dedicated customer service team to help you out if you have trouble with a client or payments.

Umbrella companies do work with recruitment agencies, which mean a lot of contractors can get confused as to whether they find work for you. Sadly, whether you work for a limited company or umbrella company, you will still need to be able to find work for yourself. Although umbrella companies work with recruiters, the actual task of getting offered a contract is down to you, and one of the best skills a freelancer can have is self-promotion.

You will generally be up against a number of other contractors for any contract work, and making your pitch work and fit in with the company is the best way to find yourself with a good contract that will keep you afloat for a while. You may find that you get more opportunities if your umbrella company is well connected with good recruiters, but you will still need to find the work for yourself, and pitch well for it to be in with a chance.

Posted in News, Umbrella Company |

9

May 12

How to sell your services as part of a PAYE umbrella company

By Umbrella Companies on May 9, 2012

As a contractor one of the biggest parts of your job is actually finding a contract which interests you and will pay the bills. Moving from full time permanent employment tends to be the kind of move made by those looking for something a little more exciting from their working life, but the sad fact is the most interesting jobs are the ones that are snapped up quickly!

If you have decided to work as part of a PAYE umbrella company you may already have given yourself a step up. UK umbrella companies will take some of the stress out of freelancing by paying your tax for you and giving you your monthly or weekly wage direct into your bank account so that you never have to worry about the financial side of things. Umbrella companies also tend to be tied to some of the better recruitment companies so that you are able to find yourself work from a wide range of the best opportunities in your area.

However, whether you work for a limited company or umbrella company, you will generally be fighting off hundreds of other contractors for your dream position. So how do you do this?

If you are applying using a CV and cover letter, your most important task is to tailor BOTH of these to the job in question. Most people will have a standard CV and just make their cover letter apply to the job they are applying for. However, if you use your CV as an additional tool to sell yourself you will find the employers really take notice. This does not mean making up your work history, but simply omitting jobs which have no relevance, and when you concentrate on the skills you have learned from your employment history, try to focus on the ones that will benefit the position you want most.

Even better, if you get an interview or are invited to apply in person, just allow your personality to come through whilst you talk about your experience. If the company has met you as a person then if you are qualified for the job the only reason they may turn you down is if you wouldn’t fit with the other employees, in which case the contract may not have been the right one for you anyway.

Posted in News, UK Umbrella Companies |

6

May 12

Why a contractor might say no to work

By Umbrella Companies on May 6, 2012

Working as a freelancer or contractor, it might seem foolish to turn down a job for any reason. Not knowing exactly what your next contract will be, or that you will be able to find one before your current contract ends, if you are offered work the fact that you need to pay for your rent/mortgage and general living expenses may force you to say yes.

But there are situations where you should always say no to work, and try to look for something else, if you are to remain happy and satisfied in your work.

The best umbrella companies will have a great range of recruiters and contracts offered, meaning you should get a step up when it comes to finding work. However, not all of these jobs will work for all freelancers and if you feel the terms are not suited to you you should turn it down. For example, if you charge a certain rate for your work, be it hourly or weekly, or on completion of a project, you should always stick to it and not sell yourself short. If a potential client will not meet your rate and offers you less with no extra benefits, don’t take the job, or insist on your rate being paid. Despite how attractive it may seem to get a long term contract and not have to worry about trying to find more work, especially if you are being paid straight into your bank by your PAYE umbrella company and the umbrella company calculator shows you can afford to live on what is offered, but your rate is what it is and the employer should respect that.

Another reason to turn down work is if you get stuck with a demanding and unreasonable client. Even if you have already begun to work with them, an unreasonable client will cause you so much in the way of stress that they may pull all of the joy out of your work. One of the main reasons to begin contracting or freelancing is to be able to enjoy your work and only take on the best projects, so if a client is making you miserable it is time to leave or turn down the contract.

Finally, if a job doesn’t seem to match up with your skill set, even if it is well paid and you would enjoy it, you should think hard before accepting it. If you wouldn’t know exactly how to do the job, you may find that it is more difficult and stressful than you may have hoped, and you will be taking work away from another contractor who may have enjoyed it far more.

Posted in Best Umbrella Companies, News |

3

May 12

Make a work budget using an umbrella company calculator

By Umbrella Companies on May 3, 2012

One of the best things about working for an umbrella company is that you will always know exactly what you have coming in each month, as you can use an umbrella company calculator to work out how much should be going into your bank after tax and admin fees.

You will also know exactly when the money should appear, which means it should be easier to work out your monthly budget. Most umbrella companies will pay you on the same day each week/month, so you should work out your budget starting from this day until the next payday.

When starting out as a self employed person, there are bound to be a few things that you will need to get your work off the ground and in most cases these can be taken out of business expenses – especially if you are working for an umbrella company. However, this is money that you can claim back, and won’t be given to you before you make your purchases so these should be worked into your budget.

For any contractor or freelancer, because you will be working for a number of companies and in different locations you will probably need to look at getting a laptop or netbook to take you from home to work, and to allow you to work from home. This is bound to be one of your bigger expenses, but will also be one of the first things you should consider buying. Try to work out exactly how much you can afford to live on each month and put aside everything else to buy your laptop.

As a contractor you will want to start putting money into savings as soon as possible, as work may not always be freely available and you will want something there to see you through any difficult months. However, getting together everything you need for your business should be your first concern as once you have everything you need to work effectively you should find yourself able to take on more work and thus make more money.

Make a list of everything you need to set up your business, then start making a monthly budget which includes money to go towards all of these expenses. Once you have bought your items you can claim back this money on expenses, and then this will go into your savings.

Posted in News |

2

May 12

Make the most of your free time earned working for a PAYE umbrella company

By Umbrella Companies on May 2, 2012

Working for a PAYE umbrella company means that you will have far more freedom in your work. Being a contractor tends to mean that you have to deal with all the admin and financial workings of your business, as well as actually working, meaning that although you get to work for yourself and to your own schedule, you may actually find you have less time to enjoy your work.

Thankfully, umbrella companies are there to help you deal with this side of working for yourself, giving you a little more free time and allowing you to make the work you actually need to do your main focus. Umbrella companies work as a middle-man between you, your clients and the recruitment agencies. You need only speak to the umbrella company and they will help you to find work, and then pay you for what you have done, taking out the tax for you (as well as an admin fee). You have access to a dedicated customer service team who can help you out if you have any problems with the company themselves or your clients, and you can use an umbrella company calculator to work out in advance how much you should be paid, so you will know straight away if any mistakes have been made.

Because all of this is done for you, all you really need to worry about is getting work and then doing the very best you can with the work you already have. This extra, saved time should be used to help build your business and set you up for a secure financial future – as working as a contractor can be a slightly more unstable business than working full time in a permanent role.

With any extra time you may have spent doing financial workings out or trying to chase clients, think about keeping tabs on what is going on in your industry and any positions which are coming up. Even if you are in the middle of a contract, it is always worth seeing what jobs are available and looking for your next contract. Try contacting the company which is offering the role and telling them that although you are not available for this role in particular you would love to do something similar for them in the future. This means they will keep you in mind when other work comes up and this should help you to find new work as soon as your contract ends.

Posted in News, Umbrella Companies |

30

Apr 12

Make your IT umbrella company experience work for you

By Umbrella Companies on April 30, 2012

When you first start out as a freelancer or contractor, your whole experience will be about working out what works best for you in order to pick up more work, work effectively and enjoy the experience too. If you have decided to work for an IT umbrella company you will already have made a helpful step towards getting the most out of your experience, as umbrella companies take some of the stress out of working for yourself.

 

An umbrella company basically deals with the tax aspects of your self employment, as well as having dedicated customer service teams to help you if you run into trouble with a client or have a problem with your pay. you can work out exactly how much should be going into your bank by using an umbrella company calculator, which will tell you what your take home pay is after tax and admin fees, and if this amount does not match what goes into your bank you can simply contact your IT umbrella company to ask for the situation to be rectified.

 

So, the administration areas of your work are easier, but how do you make the most of working for yourself, and really enjoy your work?

One of the best things you can do is to give yourself a break every once in a while. It is a common idea that contractors work less than those in permanent employment because they can get up when they want and work to their own schedule. In fact, contractors often end up working far more than people in permanent jobs as they only get paid for the work they do, and tend to take on more work when they get the opportunity. This can lead to never having a full day off or being able to switch off, so it is important to take a real break from work every now and then. Even if all you do is switch off your computer and phone and go for a walk or dinner, giving yourself some time off each week will stop you struggling later down the line.

 

You should also try to get out and talk to people every day, even if it is just meeting a friend for lunch. Working for yourself can be a lonely business so this time will help you to feel more connected to other people.

Posted in News, Umbrella Company |

27

Apr 12

How to make the most of working from home

By Umbrella Companies on April 27, 2012

One of the main reasons many people decide to leave permanent employment and go to work for themselves or umbrella companies is the possibility of working from home and for themselves. Whether you work for a limited company or umbrella company, you will be in charge of the work you take on, and the hours you give yourself, choosing to work for how much money you want to make and what is offered for you rather than having to stick to the rules of a higher organisation.

If you choose to work for a PAYE umbrella company you will even be paid regularly into your bank account and pay tax, meaning you should be able to reap the benefits rather than having to worry too much about the admin side of working for yourself. However, working from home and for yourself for the first time can mean you run into a few hurdles at first, as you adapt to not having a specific set of rules about how to go about your work.

Working from home can mean you end up working far longer hours and find it difficult to switch off. Often, because you only make money for the hours you work, you will find yourself overworking to try to get as much done as possible. Although this may help you out financially, you will be heading quickly for a burn out if you do not take any time off, so it is recommended you try to stick to the same number of working hours every day. If you struggle to get up in the mornings, then start work at 10 and finish at 7, or if you have other commitments during the day, work in four hour bursts with a few hours off in between. Whatever you do, if you can get into a routine of working the same hours each day you should not find that your work takes over your life, and will be able to maintain a good work/life balance.

Another thing to do is to try to get out of the house at least once every day. Even if you just go for a walk around the block, you will find that leaving the house will energise and refresh you far more than just being up and around the house, and you may find yourself feeling more inclined to work when you get back.

Posted in News, Umbrella Company |

25

Apr 12

How to build a client base with your paye umbrella company

By Umbrella Companies on April 25, 2012

When you are first starting out as a contractor, the most important thing to do is to build up a strong client base to guarantee you work at all times. A PAYE umbrella company will generally work with a number of recruiters to help you to find work, but as the company will probably work with a huge number of freelancers and contractors at any one time, it does not make sense to sit back and hope the work comes to you – as you will be sorely disappointed.

The most important thing to do is have yourself established as a name in your field. This means you will be at the forefront of people’s minds when jobs come up, and someone is bound to give you your first chance. The best way to be recognised in your industry is simply to have your name everywhere and this means a solid campaign of contacting businesses, leaving your name and details, and then chasing it up. Don’t hassle the companies, but do be persistent, as clients tend to favour those who know what they want.

If you have to do some work for free, then do it but try to make sure you get an offer of further, paid work, before you go into it. A lot of companies will want to see what your work is like before they hire you, and with little experience and no portfolio, the best way to show this is to do some example work for them, to a brief set out by them. This will not bring in the money you are looking for from your umbrella company calculator, but may do in the long run.

If working solely for an IT umbrella company is not bringing in enough money, and you find that you are struggling, there is no harm in taking on some temp work in the meantime whilst you get started. Stick to part time and then work really hard at getting off the ground as a contractor whenever you are not in your part time job. It seems like a lot of work, but will really pay off in the long run.

Never be disheartened if it takes a long time to move from a permanent role to the exact level of contractor that you want to be, as most contractors will find that it takes more than a year to find their feet. But try to see it as an adventure and enjoy the experience of building up your reputation and you may even enjoy the experience!

Posted in News |

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