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Changing Umbrella Companies

01 October, 2010

The UK has a large number of Umbrella Companies, some of which are highly functional firms while others do not offer the same service. Once you have become familiar with the procedures, there may be any number of reasons why you decide to change Umbrella Companies.

However, before you make the decision to change companies, it is advisable to research other Umbrella options carefully. Take into account any or all of the areas with which you are presently dissatisfied, look at the Umbrella fee structure, hidden costs, payment frequency, customer service, reputation, and above all get recommendations from other contractors.

Once you have made the decision to change, the first step is to give notice to your current Umbrella Company telling them that you no longer require their services. Contractors move around fairly regularly, so this should not cause any problems; however you may be required to adhere to a specified notice period or an exit fee depending on the original contract signed.

In order to join a new Umbrella Company there are a number of steps to follow, firstly they will require an identity check, the completion of forms with your personal details and submitting a P46 (PAYE notice of new employee) to enable the new Company to include you on their payroll.

While there should be no problems other than an explanation, if you are changing in mid-contract, the new contracts will need to be signed by your new Umbrella Company and your agent or end-client.

During a change over it may take a little extra time to clear invoices and expenses. In order to avoid mix-ups, it is recommended to make changes between contractors rather than in midstream.

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