Contractors beware not all umbrella companies are the same (Feature)

[UKFF Mod]

Continuing our series into the complex and often misunderstood world of umbrella companies, we once again turn our attention to the newbie contractor and in particular, how they can differentiate one umbrella company from the next.

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If you have any comments to make about this article feel free to start the debate below!

[JeffreyC]

not bad, not bad at all. I would say though that smaller umbrella companies may well be compliant but for whatever reason choose not to go down the Professional Passport or AEMC / 3rd party audit route. I imagine a lot of it comes down to cost.

The larger umbrellas can probably afford £5000 a year in audit fees but this is way too expensive for most....

[The SMG]

okay, okay, I get it!

So I missed out compliance (I've already apologised )....

You didn't have to write an entire article about it!

G

[lurch]

Good article, although I'm not sure about the somewhat scary pic.

Originally Posted by The SMG

okay, okay, I get it!

So I missed out compliance (I've already apologised )....

You didn't have to write an entire article about it!

G

There is always more you can add to these things, no reason to beat yourself up over it. You were talking about financial differences, and that's not something that gets covered much either.

Originally Posted by JeffreyC

not bad, not bad at all. I would say though that smaller umbrella companies may well be compliant but for whatever reason choose not to go down the Professional Passport or AEMC / 3rd party audit route. I imagine a lot of it comes down to cost.

Smaller umbrella companies may indeed by compliant, but without a third part audit how are you going to prove that and distinguish yourself from all the other companies just saying they're compliant (and they do exist). In my opinion it's a bit like the meme "pics or it didn't happen", "Audit or you're not compliant".

It's not all bad 3rd party audits are good from a marketing standpoint (You can spam the internet with article (especially if you go with one of the name auditors), it shows good practice to agencies and reassures contractors) and are an important part of this business, you need someone else to check your processes in case there is something you missed.

[curleyted]

Part of the problem is that when contractors are new to this game compliance is the last thing on their mind - especially if the agent scrawls a company name and phone number on a piece of paper and say "this lot are quite good, give them a call".

[lurch]

Originally Posted by curleyted

Part of the problem is that when contractors are new to this game compliance is the last thing on their mind - especially if the agent scrawls a company name and phone number on a piece of paper and say "this lot are quite good, give them a call".

I agree completely, but I can't see any way to improve that situation barring the introduction of some sort of government kite mark. Agents have people that they like to use and many contractors just go for what they think is the best offer, and without an incentive not to why shouldn't they?