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Recruitment Consultants/Umbrella Companies



Gordon Bennett

Active member
Sep 7, 2010
384
I know NSC likes nothing better than a thread about recruitment consultants and their ilk so I’m expecting some replies!!

Anyway, I am just about to start a 6 month contract through a recruitment consultant. I’ve never had to use one before but was a little wary as my only knowledge of them has been through what I’ve read on NSC!! However, thus far my dealings with him have been very good/professional so I’ve nothing bad to say about the chap.

My ideal choice would have been a permanent job but in the short term this contract ticks a lot of boxes and may be route into a permanent job so for the time being setting up my own limited company isn’t really something I’m looking to do. The recruitment agent has suggested using their ‘recommended’ umbrella company which he reckons will be a better option as I’ll be able to claim back my travelling costs which, as the daily commute is a 120 mile round trip, will start to mount up.

So, my question is - is there anything I need to be wary of when using an umbrella company like this? I don’t know at this stage what their charges are but I assume they won’t be the cheapest out there and will probably operate on the basis that most people will go with them as it’s the easy option.

Any advice gratefully received.
 


Badger

NOT the Honey Badger
NSC Patreon
May 8, 2007
12,750
Toronto
I would be incredibly wary of recommendations from a recruitment consultant. I've gone down the limited company route and my consultant (who was very good I hasten to add) tried to put me in touch with his recommended accountancy firm, I'm sure they were good but they were charging twice as much as a lot of others I looked at.

I did look down the umbrella route and there are loads of very reasonably priced ones online, I would have a quick Google. There's only so much tax saving to be had by using an umbrella company so they should all offer you exactly the same service, in that respect you should be looking at the monthly charge as the main saving.
 


Joey Jo Jo Jr. Shabadoo

Waxing chumps like candles since ‘75
Oct 4, 2003
10,895
I've not been contracting for a while but I've used two Umbrella Companies in the past, Orange & Gold and Parasol. Both were pretty good and not as expensive as you'd expect. I don't think O&G are offering umbrella services any more but I'd recommend Parasol. Give them a ring and they will be able to explain everything, they've got a calculator that helps work out what you should expect to take home. They can also advise you on what you can claim for in expenses that are then paid back to you from your wages before you pay tax etc.
 


Gordon Bennett

Active member
Sep 7, 2010
384
Cheers for the advice guys.

Looks like the recommended company charge £23.50 per week which seems reasonable compared to some of the charges I've seen. I can feel myself edging towards the 'easy option' but will certainly try to find out what exactly I can claim in expenses before signing on the dotted line!!
 



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