IT Contracting - Which umbrella company?

Kingy · 21 Jul 2006 at 16:01

Do any of you guys here work as a contractor via an umbrella company?

I used to be with Prosperity4, but Hays IT don't work with them, and have an approved companies list. I've looked at Parasol, but don't rate them, and currently looking at Giant and Oxygen 360.

Any recommendations?

[DOD]Asprilla · 21 Jul 2006 at 16:07

Tell Hays IT to get stuffed.

They tried to tell me that I couldn't use Assignment Solutions because they didn't meet their standards. I've had major arguments with a couple of Hays directors about this and personally I think they are getting kickbacks from the 4 or 5 agencies they allow.

If you want to stay with Hays you'll have to get the list of the ones they all first and choose one of them. It's a really short list btw.

Personally I think it's shocking that they think they can dictate who you use.
Their whole argument is that some Umbrellas provide poor service to their clients and this makes Hays look poor in the eyes of their clients because of late payments to the contractors, etc. I asked if they had problems with Assignment Solutions and they said no, it was just that ASL hadn't signed their terms and conditions. ASL had never been offered them and had spent three months asking for them only to be denied the option. It's a con and it would have cost me about £5k+ a year.

binksy · 21 Jul 2006 at 16:29

if by giant you mean http://www.giantgroup.com/ . i've used them before didnt have any major problems but did only use them for 6 months or so took a perm job in the end.

Admiral Huddy · 21 Jul 2006 at 16:30

http://www.giantgroup.com/

Brilliant company. They had a few teething problems in the early years but the are sound now. I've used them myself - no problems.. Excellant online payroll and time sheet system.. very good payers too.

You get full IR35 protection and class C dividend payment so you avoid nasty NI payments. You'll need to speak to them about rates but the are very competive..

Speak to Marlaine Gordon and tell her you were recomnded by Paul Hudson..

She'll help you answer your questions.

VeNT · 21 Jul 2006 at 16:31

can someone explane this to me?

[DOD]Asprilla · 21 Jul 2006 at 16:39

VeNT said:
can someone explane this to me?

If you are not employed by the compay you work for; instead you have to either form your own company or join an umbrella company who will pay you.

The company you are working for pays the recruitment agent, they pay the umbrella and they pay you. It can be pretty complicated but it's all to do with contracts, employment status and tax.

Essentially hays are trying to dictate who you work for even though you could have been with that company trouble free for many years and have a very good working relationship with them.

VeNT · 21 Jul 2006 at 16:41

[DOD]Asprilla said:
If you are not employed by the compay you work for; instead you have to either form your own company or join an umbrella company who will pay you.

The company you are working for pays the recruitment agent, they pay the umbrella and they pay you. It can be pretty complicated but it's all to do with contracts, employment status and tax.

what are the pros/cons?

[DOD]Asprilla · 21 Jul 2006 at 16:44

VeNT said:
what are the pros/cons?

Of contracting or of each individual umbrella?

With contracting you don't have permenant employment and technically you should be the first ones out the door at the end of a project or if finances become an issue. If you are too expensive for your work volume then you are out and it's much easier then sacking a normal employee because you aren't employeed by the people you work for.

On the plus side, you pay less tax / get paid more and you are freer to move between companies and roles, even if that is only down to perception in your own mind and the employers.

Pros and cons of umbrellas are as varied as they come as there are many many different salary solutions.

Morba · 21 Jul 2006 at 16:46

more money in your pocket.

RaMDOM · 21 Jul 2006 at 16:53

When I was contracting I went with Parasol IT in St Helen's. Very good and cheaper than all the other companies I contacted.

Trimbo · 21 Jul 2006 at 18:21

I suggest you checkout: http://www.contractoruk.com/

Forums not for the faint hearted however

robbiemc · 21 Jul 2006 at 18:28

I used to work for Atlantic and can honestly say they do a brilliant job.

www.atlantic-umbrella.com/

Kingy · 23 Jul 2006 at 08:58

[DOD]Asprilla said:
Tell Hays IT to get stuffed.

They tried to tell me that I couldn't use Assignment Solutions because they didn't meet their standards. I've had major arguments with a couple of Hays directors about this and personally I think they are getting kickbacks from the 4 or 5 agencies they allow.

If you want to stay with Hays you'll have to get the list of the ones they all first and choose one of them. It's a really short list btw.

I agree, and I did once before, but this is a cracking job, and not one that I can afford to turn down on principal.

This is the list of Hays approved Umbrella Companies:-

Giant Group - 0870 125 8692
Parasol IT - 0870 744 3908
3 Sixty Group - 0845 202 0360
Lester Sybersolve - 0207 413 3800
JSA International - 01923 257200
Liberty Bishop - 0800136047

Admiral Huddy said:
http://www.giantgroup.com/

Brilliant company. They had a few teething problems in the early years but the are sound now. I've used them myself - no problems.. Excellant online payroll and time sheet system.. very good payers too.

You get full IR35 protection and class C dividend payment so you avoid nasty NI payments. You'll need to speak to them about rates but the are very competitive..

Giant are one of the companies I've been speaking to, and although Oxygen360 have a far better dispensation policy, Giant project £40 extra per week in my take-home pay. It sounds like a no-brainer, but as far as I can tell, the Giant method seems to be a crude middle finger to IR35, but with insurance so that you don't get stung, assuming that the policy is comprehensive. Was this something that ever concerned you?

Thanks for all the replies

Saberu · 23 Jul 2006 at 09:27

So you get a job first then ask your employer if you can be paid in this contractual method?

paul8811 · 23 Jul 2006 at 09:44

i use www.1stcontact.co.uk I worked LTD company though & have never had any problems with them at all. Been with them for about 4 years now & they allways answer all queries really quickly clear & consise. They also do umbrellla so may be worth checking them out.

Kingy · 23 Jul 2006 at 11:13

Saberu said:
So you get a job first then ask your employer if you can be paid in this contractual method?

No. You get a contract role, then tell the agency or company to pay either your own limited company, or which umbrella/composite company to pay.

wonder_lander · 27 Jul 2006 at 00:03

Prosperity 4 are one of the worst brolly companies going!

Hays as well as several of the other larger agencies have taken stances on using only umbrella companies on their prefered lists. This is to minimize risks from some of the more "dodgier" schemes available!

I have to be open and honest and explain that I'm a contractor myself who is actual working at Parasol, although not through them for various reason, altough non of them are bad!

Additionally I'm related to the MD of Parasol although my post in this thread serves me to no end!

In a nutshell take the advice offered and head over to the contractor uk forums for unbiased real world experience, avoiding spammers with low post counts!

Celestial Caravan · 27 Jul 2006 at 00:11

At last. A question I can answer

Any umbrella company will do as long as it is not PROSPERITY4. Try and get a personal recommendation from more than one person. If your employer or agency have a prefered list of umbrellas then take the hint and use one of them. They will have drawn up such a shortlist for a very good reason.

If you are looking at contracting for the long term then consider starting our own limited company. Have a chat with an accountant - one that has been personally recommended to you.