How to choose the right Payroll company for you
There is a lot of information around umbrella companies and it can be quite overwhelming when choosing the right one for you. All payroll companies should pay you pretty much the same take home pay so there will be little difference, which can make it difficult to select the one best suited to you. Here are some guidelines that we think will help you:
- Choose a HMRC Compliant Company
All payroll companies must be HMRC compliant, this should be your number one consideration, some companies will offer higher take home pay, however, your net pay should not really vary from one provider to another. Your chosen umbrella company should be fully compliant to ensure they are paying the correct NI and tax on your behalf. A fully compliant company will offer HR and Legal advice and ensure your employment rights are covered.
- Check the Charging Model
Payroll companies make their money by charging a management fee for the service. This fee will vary from company to company, but some companies will offer an attractive weekly management fee then add hidden charges as part of the service. Some may charge for additional information and advice, copies of payslips or a charge for leaving the service. Choose a company where there is a single fee and ensure the end to end service is all included.
- Look for a company who are transparent on how they operate and what you can expect to take home
The model is very simple and should be tailored to your specific circumstances, your pay slip should clearly identify the key components of your deductions. During the on-boarding process a payroll expert should ask specific questions to allow the service to be tailored to your circumstances. Be wary of companies that offer additional take home pay over another company, it doesn’t work like that. There are clear calculations that apply to your take home pay irrespective of which company you choose.
- Choose a company with an excellent service model
Choose a company that employ people who you feel you can work with. A company who has excellent customer service at the heart of their business model will give you confidence that if you have issues or need guidance they will fully support you through the process. Look for additional services such as Pension advice.
- Is the company knowledgeable about the industry
Your chosen company should be highly knowledgeable on payroll legislation, specifically with the implementation of IR35 in April 2021, they should have in-depth knowledge of ‘off payroll legislation’ to be able to offer you the best advice based on your individual circumstances.
