And because contractors take guidance from umbrella companies by what expenses they are able to legitimately claim back and offset against their tax bill, it is essential that the service company is compliant.
But how can you see if your umbrella company is complaint? Listed below are five key checks to be sure umbrella companies are compliant:
1: Investigate the umbrella's background
Make certain the umbrella company is UK based and includes a good trading history. Buy a comprehensive credit report that highlights any bad debts. garden umbrella with stand price
Look at contractor websites that review umbrella companies and check contractor forums that will indicate whether an umbrella is trading compliantly or not. Ask your fellow contractors who they've used and search for news reports online - the umbrella might have been afflicted by repeated investigations by HMRC.