Concerned that the net pay on your payslip isn’t accurate?
If you believe that your umbrella company is ripping you off, it’s vital you switch to a company you can trust as soon as possible, but how can you distinguish the reputable umbrella companies from less trustworthy alternatives?
Experts in vetting umbrella companies, Umbrella Tracker takes the hard work out of this guessing game, helping you to compare only the most trusted and fully compliant umbrella companies in the UK.
Do umbrella companies rip you off?
While it’s true that some non-compliant umbrella companies engage in unscrupulous practices to boost their income, compliant umbrella companies, like the ones you can compare at Umbrella Tracker, won’t rip you off.
Typically, these companies simply charge a fixed weekly or monthly fee, which varies between £15 and £30 per week on average in the UK, for their services.
As long as your umbrella company is transparent about its fees structure and delivers its agreed services, you shouldn’t feel like you’re getting a bad deal.
How to tell if you’re being ripped off
Still concerned that your umbrella company isn’t being upfront with you?
Simply carry on reading to discover some of the biggest signs that you might be being ripped off.
Consistent poor service
No one likes poor service, but easy and speedy onboarding with an umbrella company is essential if you want to start earning as soon as possible.
While your umbrella company may not be actively trying to rip you off, a poor setup service can make you feel as though you’re already missing out.
At Umbrella Tracker, we use client testimonials and Preferred Supplier Lists (PSLs) from recruitment companies to ensure we only recommend umbrella companies that provide a high-quality service.
You’re earning too much
While this may seem counterintuitive, taking home more than 80 per cent of your earnings is often a sign that your umbrella company isn’t fully compliant with UK tax laws.
Unfortunately, this may mean you receive an unwelcome visit from an HMRC official later down the line and end up with a big tax bill.
Hidden charges
While some umbrella companies will provide certain services (such as providing you with a mortgage reference letter or a copy of your P60 at the end of the year) for free, others could charge you a fee for these services as it involves extra work.
However, these charges may not be explicitly made aware to you, which could leave you feeling ripped off rather than properly supported.
Other hidden charges can also include signing-up and leavers fees as well as insurance cover – it’s therefore always worth asking which of these services are included beforehand.
Same-day payment charges
Although some contractors may request same-day payments (payments that arrive in the receiving account the day they’re made), umbrella companies may add on a fee for this service which can come as a surprise.
However, if an umbrella company is known for holding money unnecessarily and creating a delay, you should probably avoid using it.
Holiday pay
If your holiday pay is being taken at source and you’re only given access to it in the year that you work when you take a break from contracting, then you may feel like you’re getting a bad deal.
While some umbrella companies work in this way, it’s now more common for ‘rolled up’ holiday pay to be added to the contractor’s regular pay, so they have easy access to the money when they want it.
If you’re unsure how your holiday pay will be handled by an umbrella company, don’t be afraid to ask!
Contact Umbrella Tracker today!
Concerned that your current umbrella company is ripping you off?
Get in touch with the professional advisors at Umbrella Tracker to discover thousands of fully vetted and accredited umbrella companies that you can trust.
For your peace of mind, we carry out thorough independent research which includes analysing current client testimonials as well as PSLs from recruitment companies.
Regardless of whether you’re a healthcare, social care, or IT contractor, we’ll help you to compare sector-specific umbrella companies using our free and unbiased advice.
To receive a free comparison or for clear answers to more questions like ‘do umbrella companies rip you off’, please don’t hesitate to reach out to our helpful team today!
You can do this by either filling in our online contact form or giving us a call on 0203 026 3303.
