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Avoid payment hassle with an umbrella company

As a contractor you will be used to organising yourself and your time, however its always nice to have a some help! An umbrella company is there focus on the little things, so you can concentrate on your work.

Time sheets

The first step to getting paid is filling out your time sheet. The time sheet will detail your week’s work and therefore determine how much you have earned. An umbrella company will provide you with the time sheet but it’s up to you to make sure it’s filled out correctly!

Before submitting the time sheet, check your rate of pay. For example, you could be paid daily or by the hour. If you are unsure about how your rate is calculated this can be cleared up quickly by contacting your client.

Make sure the time sheet is signed by both you and your client. Good umbrella companies should chase you up on the day your time sheet needs to be signed. Perhaps most important of all, if you don’t submit it on time, you won’t be paid!


Once you have completed your time sheet, you will need to complete an invoice. Raising an invoice is essential as it ensures you get paid for the specific work you have done.

Your umbrella company will prepare the invoice for you but for but you must provide them with your signed time sheet. Once the invoice is prepared the agency will send it to your client – then all you have to do is await payment.

As well as preparing the invoice, your umbrella company should raise and distribute your invoice within four working hours of receiving your time sheet. This eliminates a lot of hassle for the contractor. Without an umbrella company you would have to create and send the invoice yourself.


Once all your documentation has been filled out and sent off you should receive payment within the week. Payment deadlines are strict with most agencies so make sure to send off your time sheet and invoice on time.

You should not have to wait for the client to pay. Companies today use factoring organisations (they get paid before the client has actually paid). It is not common practice for a contractor to wait on the client for payment – if this is the case, start chasing up your wage.

Quick payment is one of the perks of contracting so make sure you’ve supplied your agency with all the relevant information to avoid delays.


With The Treasury and HMRC looking to stamp out tax avoidance schemes it can be very helpful to have all your taxes accounted for clearly. All taxes and NI will be calculated and deducted by your umbrella company, so you won’t have to worry about this. All the money you receive will be taxed correctly and legitimately.


There’s hardly any. One of the best things about working with an umbrella company is that you won’t have to worry about excessive paperwork, they will take care of most of it for you!


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