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due-diligence

Due diligence is critical to finding the right umbrella company post-IR35

We put heavy emphasis on due diligence when it comes to umbrella companies at Greatpay.

Umbrella companies can be hugely beneficial to both new and experienced contractors. A good umbrella can handle a contractor’s admin for them, help keep them tax-compliant, provide same-day payment services and much more besides.

The level of service a good umbrella company can provide is simply immeasurable.

Contractors lucky enough to partner with an umbrella that fits seamlessly around their working lives could find themselves with more time and confidence that their affairs are being looked after by a professional partner.

This is especially true now that IR35 has come into force throughout the private sector. An umbrella company with experience of IR35 can help contractors to understand the new reforms, and what needs to be done to achieve compliance.

At the same time, though, we also like to emphasise that not all umbrellas are created equal.

Some will promise contractors the earth to sign up with them, and insist that they’re ‘100% HMRC compliant’. The reality may be though that they’re little more than a tax-avoidance scheme, and don’t have contractors’ best interests at heart.

It’s part of the reason why HMRC and the Advertising Standards Authority (ASA) launched a campaign toward the end of 2020, to highlight the danger of trusting wording by such schemes and what contractors should keep an eye out for when searching for an umbrella.

Look, look and look again into your chosen umbrella

We’re fully behind the campaign. We see first-hand the incredible work and services umbrellas provide for contractors on a daily basis, and what a positive influence they can be on a contractor’s life.

The campaign does raise a valid point about due diligence though, and it’s a message that’s recently been mirrored by Phil Pluck, the CEO of the Freelancer and Contractor Services Association (FCSA).

Speaking to industry publication Recruiter, Mr. Pluck highlighted IR35’s introduction and put a call out to recruitment agencies to re-examine their preferred supplier lists of umbrella companies and “do your due diligence”.

We couldn’t agree more, and think it’s a message that needs to be heard beyond the recruitment sphere.

We constantly review the umbrella companies and services we partner with. It’s the Greatpay way.

We also only operate with providers of contractor services that are accredited or have compliance confirmed by a high-level independent advisor.

It’s simple. We do this to make sure our umbrella companies and service providers are always providing the best level of service so contractors will always have trust in us and the people we work with.

Experienced contractors will also understand that performing due diligence isn’t a one-off exercise. 

Keeping the wider supplier chain under constant monitoring is the best way to ensure contractors are getting the best value and are using a service that always works for their benefit.

And, while we employ strict due diligence toward our service providers here at Greatpay, we always advise that contractors themselves need to do consistent due diligence too, to get the support they deserve.

Find out more about why due diligence is so important when choosing an umbrella company and how we evaluate our partners by contacting Greatpay today.

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