These principles show how Umbrella companies will work with contractors to establish an effective working relationship that ensures both parties are operating in compliance with current legislation:

• Umbrella companies should comply with all applicable legal requirements and advise contractors and agencies accordingly whenever the occasion merits.
• When tendering for business Umbrella companies should not use their dispensation as a marketing tool in a manner that suggests the contractor is the main beneficiary of an HMRC dispensation.
• Umbrella companies should not, in any way, encourage or assist freelance contractors to claim business expenses fraudulently.
• Umbrella companies should not accept business expense claims that result in profit for an individual, but only for expenses actually incurred.
• Umbrella companies should have trained staff: answering telephone/email queries, and able to advise contractors and agencies.
• Umbrella companies should be customer-service orientated with a responsive, courteous, and professional team.
• Umbrella companies should publish their complaints procedure so as to be easily understandable by customers.
  Umbrella companies should agree to explain clearly all charges, prior to accepting any new business, and should not rely on ‘small print' to elicit additional monies from contractors.
• Umbrella companies should not offer recruitment agents, referral rewards, cash or other forms of incentive in order to influence decision-making and choice of Umbrella supplier.

These standards should be considered a minimum. Many Umbrella companies will offer you this and a great deal more besides.

Be cautious about working with any Umbrella company that cannot operate to these minimum standards.