Whether you class yourself as a contractor, freelancer or temporary worker, you may be faced with the difficult decision of choosing an umbrella company to administer your tax and National Insurance affairs as you begin working. One of the main issues with umbrella companies is the fact that they operate within an unregulated market, which effectively means anyone can setup an umbrella company without being audited.

You may have come across some dedicated comparison sites which specifically rate the hundreds of umbrella companies out there. One of the most reliable comparison sites is umbrelladetective.com; not only do they allow contractors to quickly identify the most reputable umbrella firms, but they also provide a great jobs board and access to the latest industry news.

There are a number of things to consider if you want to choose the best umbrella company have outlined the main elements below;

1) How often do they run payroll? – Its best to go with a company that runs their payroll every day. This means that as soon as they receive your money from your agency/client they will process it on the same day. Watch out for umbrella companies that only run payroll on a certain day as this could leave you waiting for your payment.

2) Do they have a dispensation? – If HMRC believe an umbrella company to be operating compliantly with regards to the way they administer expenses, they will be issued a dispensation. This basically minimise the amount of administration for you, as well as for them and HMRC. An umbrella company with a dispensation will allow you to claim travel and subsistence expenses without having to send in receipts (but still keep them!).

3) Are they known for good customer service? – Why not visit umbrelladetective.com and look at what other contractors say about the differen