When it comes to setting up a business and deciding the way to operate, it can sometimes feel like you have an impossible task. There are many ways to work in business, different ways to work out pay, tax and even benefits - so how do you decide what is the best type of business set up for you?

1. How Can I Decide If An Umbrella Company is For Me?
When it comes to setting up a business and deciding the way to operate, it can sometimes feel like
you have an impossible task. There are many ways to work in business, different ways to work out
pay, tax and even benefits - so how do you decide what is the best type of business set up for
you? Research is the best way to do this - looking online, speaking to accountants and even
reading books can help you to decide what the best type of business is for you. For many people,
an umbrella company is a good choice - and here is how to decide whether it is right for you!
Is There a Charge?
You should check with the company you decide to go through, but generally there should not be a
charge to set up as an umbrella company. You usually is a charge when they process time sheets
for you, but there is not usually any charges outside of this.
When Will I Get Paid?
Again, you'll need to check with the company that you decide to work with. However generally you
can get paid straight to your bank by BACS or faster payment. You should not expect to wait more
than 2-3 working days for payments and in fact should often get payments the same day, but
check this with the company that you set up with.
Claiming Expenses
Once you have set up as an umbrella company you will be able to claim expenses. These must be
expenses that are directly in relation to your business - and must be exclusively for your business
only, so for example business travel.
Do I Get Holiday Pay?
Yes - usually this will be at 28 days per year.
Do I Get Sick Pay?
You'll always be entitled to Statutory Sick Pay (SSP) but generally won't be entitled to sick pay as the company won't be taking any money out of your wages while you are working, so there will
be nothing in the pot to pay for your sick pay.
Do I Need Insurance?
Most companies will make sure that you are covered for Employers Liability, Public Liability and
Professional Indemnity Insurance - If they don't do this then you will need to look up how to sign
up for this separately. Looking at personal accident insurance and death-in service cover could also
be a good idea. You might be able to get an insurance company that covers all of this for you
under one policy.
Can I Get References?

2. If you need a reference as proof of income then the umbrella company that you work with can do
this for you. There should not usually be a charge for this service, but it might be worth checking
this before you sign up to a company and commit to them.
If you are looking to sign up as an umbrella company then most companies will be happy to
answer any questions you have and give you advice on the best way to go about this and whether
it is the best solution for you and your business needs.