By Gideon Schulman
Choosing the right umbrella company can make or break your contracting experience. Ask these five key questions before you sign:
1. Can you clearly explain my payslip—from gross to net?
You should understand every deduction:
- Tax (PAYE)
- National Insurance
- Holiday pay
- Pension contributions
- Admin fee
Tip: If the explanation is vague or the numbers don’t stack up, walk away.
2. How is my holiday pay handled?
Ask whether holiday pay is:
- Rolled up into your weekly/monthly rate
- Accrued and paid out when you take time off
Tip: Rolled-up holiday pay can feel like a higher rate but you may not realise you’re not being paid extra when you’re off.
3. Are you FCSA-accredited or part of a compliance scheme?
Accreditation like the FCSA (Freelancer & Contractor Services Association) provides reassurance that the company operates within HMRC rules and doesn’t run aggressive tax avoidance schemes.
Tip: If they offer “loan schemes” or “90% take home,” steer clear, it could mean future tax investigations.
4. What support do you offer if I have payroll or tax questions?
Can you speak to a real person? How fast are they to respond? Are they payroll specialists or generic customer service?
Tip: Try contacting them before signing—see how they treat your initial queries.
5. What’s included in your fee—and what’s not?
Ask for:
- A written breakdown of all fees
- Confirmation that there are no hidden charges
- Clarity on what happens if your contract ends mid-month
Tip: A flat weekly fee is common but any vague “percentage-based” model should raise questions.
Final Advice
Read the Key Information Document (KID)
Ask your recruitment agency if they vet or recommend umbrellas
Don’t confuse silence with satisfaction—if it doesn’t feel right, it probably isn’t
Bonus Tip: A good umbrella company doesn’t just pay you, they support you.
About the author
Gideon Schulman
Chief Strategy Officer
Former International HR Director, who has vast experience with HR policies and compliance. Specialises in making sure we follow all current and pending legislation and plan a strategic oversight of the organisation.
Choosing the right umbrella company can make or break your contracting experience. Ask these five key questions before you sign:
1. Can you clearly explain my payslip—from gross to net?
You should understand every deduction:
- Tax (PAYE)
- National Insurance
- Holiday pay
- Pension contributions
- Admin fee
Tip: If the explanation is vague or the numbers don’t stack up, walk away.
2. How is my holiday pay handled?
Ask whether holiday pay is:
- Rolled up into your weekly/monthly rate
- Accrued and paid out when you take time off
Tip: Rolled-up holiday pay can feel like a higher rate but you may not realise you’re not being paid extra when you’re off.
3. Are you FCSA-accredited or part of a compliance scheme?
Accreditation like the FCSA (Freelancer & Contractor Services Association) provides reassurance that the company operates within HMRC rules and doesn’t run aggressive tax avoidance schemes.
Tip: If they offer “loan schemes” or “90% take home,” steer clear, it could mean future tax investigations.
4. What support do you offer if I have payroll or tax questions?
Can you speak to a real person? How fast are they to respond? Are they payroll specialists or generic customer service?
Tip: Try contacting them before signing—see how they treat your initial queries.
5. What’s included in your fee—and what’s not?
Ask for:
- A written breakdown of all fees
- Confirmation that there are no hidden charges
- Clarity on what happens if your contract ends mid-month
Tip: A flat weekly fee is common but any vague “percentage-based” model should raise questions.
Final Advice
Read the Key Information Document (KID)
Ask your recruitment agency if they vet or recommend umbrellas
Don’t confuse silence with satisfaction—if it doesn’t feel right, it probably isn’t
Bonus Tip: A good umbrella company doesn’t just pay you, they support you.
About the author
Gideon Schulman
Chief Strategy Officer
Former International HR Director, who has vast experience with HR policies and compliance. Specialises in making sure we follow all current and pending legislation and plan a strategic oversight of the organisation.
