Umbrella Company Comparison
Please bear in mind no umbrella company can ‘earn’ you more than any other – all umbrella companies are regulated by HM Revenue and Customs.
Do not be swayed by clever marketing about increased take home pay or so called special allowances. If you take home X with one umbrella company you will take home exactly the same with a different umbrella company.
The only factor that will affect your take home pay is how much the umbrella company’s fees are, this doesn't obviously mean you should choose the cheapest but it also means you shouldn't base your entire decision on who makes the biggest claim on 'take home pay' in their marketing blurb.
Find below things to consider when choosing an Umbrella Company. These tips have kindly been provided by ContractorUmbrella.
- Fixed fee structure - some Umbrella Companies charge a percentage of your invoices which can prove extremely expensive.
- Compliant with HMRC rules and regulations - but can they prove it? Of course everybody will say they are compliant but what awards/accreditation do they have to prove it.
Account Manager for every contractor - if not you’ll be explaining who you are and what you do every time you call. - Guaranteed service levels - most Umbrella Companies will promise a variety of things but unless there is a money backed service guarantee, you have very little recourse.
- Online portal for timesheet and expenses - faxing over timesheets will soon get boring, plus you face the possibility of them getting ‘misplaced’.
- Established company & part of a chartered firm of accountants - as the Umbrella Company will be receiving your funds first, you need to be sure they won’t disappear with it.
ContractorUmbrella meets all of the above criteria and as can be seen from the price comparison table below, is also one of the most competitively priced. Prices correct as of 20th March 2009.
Umbrella Company Competitor Price Chart
| Umbrella Company | Weekly fees | Monthly fees |
| Giant Group | £28.00 | £121.33* |
| Oxygen 360 | £27.50 | £120.00 |
| Atlantic Umbrella | £30.00 | £89.00 |
| Parasol | £27.50 | £119.50 |
| Orange Genie | £27.50 | £87.95 |
| Liberty Bishop | £31.45 | £136.28 |
| Plan IT Services | 5% of invoice** | 5% of invoice** |
| ContractorUmbrella Ltd | £24.95 | £79.95 |
| SJD Accountancy Fully inclusive accountancy package for Contractors choosing to go limited |
- | £95 plus VAT - £109.25 |
* No monthly fee quoted so based on weekly fee x 52 weeks / 12 months
** Capped at £30 per week
As mentioned above, all Umbrella Companies are governed by the same rules and regulations, by law you will take home the same excluding the cost of the Umbrella Company of course.
If you would like to know more about ContractorUmbrella or working through an umbrella company visit Contractor Umbrella's site or contact a member of their team on 01206 713680 or email info@contractorumbrella.com.
Limited or Umbrella - but surely using an umbrella costs less than using an accountant and going limited?
As can be seen from the above table, going limited and using a firm of accountants like SJD whose fully inclusive fees are just £95 plus VAT per month isn't that far off and is actually less than many umbrella companies charge. This is quite a surprise to clients who are often lead to believe going limited and using an accountant is far more expensive.
In addition to low fees, any accountant will tell you that working through your own limited company is the most tax efficient way possible, meaning you'll take home more of you contract.
Find below a few pages that you might find helpful in deciding which route to take:
Take home pay calculator - How much could you be taking home?
Limited or Umbrella? Can't decide? - We help you decide which is best for you.
Contractor FAQ - All your frequently asked questions and their answers
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Take home pay case studies - Examples of contractors using limited and umbrella companies
Expenses Guide - Know exactly what you can claim
IR35 Guide - A great plain English guide to IR35
Accountancy services for Contractors and Freelancers from SJD Accountancy
If you are already a contractor or freelancer operating through your own limited company, or thinking of working as contractor or freelancer or even working through an umbrella company and want to go limited, then SJD Accountancy can give you a wealth of information and advice - as well as providing a low cost fixed-fee accountancy service which has been developed specifically for freelancers, contractors, consultants and Interim Managers.
SJD Accountancy is the UK's largest specialist provider of fixed fee, limited company accountancy services to freelancers, contractors, consultants and Interim Managers. We've been acting for clients across the UK since 1992 and have more than 10,000 already.
We are the only national specialist firm of accountants with offices in all major UK cities, so you’ll never be far from your accountant. SJD also has more qualified staff than any other firm in our market, with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well. All of our clients receive:
• Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
• Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
• Money back service guarantee. All your telephone calls and emails will be answered the same day or we will refund your monthly fee.
• Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
We offer an all inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns.
All this for a fixed monthly fee of £95 plus VAT, which is one of the lowest prices in the market.
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
