Using an umbrella company is widely considered the easiest way for contractors and freelancers in the UK to get paid. However, how do you start using an umbrella company and what are the processes involved? We’ll talk you through the steps involved and don’t worry, it’s easy!
There are dozens of umbrella companies out there, but it is imperatively important you choose a reliable and compliant provider to take care of your payroll. HMRC are stepping up their efforts to catch contractors and freelancers engaging with tax avoidance schemes.
When you have chosen the umbrella company you want to join, give them a call or contact them via their website. Typically, the registration process can be completed within 15 minutes and you will be required to provide the following information:
- Contact information
- Personal information including date of birth
- Assignment information
- Recruitment agency information (if applicable)
- Proof of ID
- Bank information
You will be required to sign a contract and we recommend you give it a thorough read. Once you have signed the contract, you will be required to submit signed timesheets to your umbrella and your recruitment agency.
Your umbrella will invoice your agency for the hours you have worked and your agency will invoice your end client. Once your umbrella has been paid your salary from the agency, they will make the appropriate deductions to your pay (PAYE). You will then receive your salary minus tax, Employees and Employers National Insurance, the Apprenticeship Levy, the umbrella company’s margin, and a few other deductions. Providing you have chosen a compliant umbrella, this will be done in accordance to HMRC rules and regulations.
It really is as simple as the above, but if you would like more information, please visit our page ‘How Does it Work?’
To increase the value you receive, many umbrellas will offer extras as part of their standard service. For example, when you choose Churchill Knight Umbrella as your payroll provider, you will have access to:
- Employee Benefits – including Sick Pay, Holiday Pay, Maternity Pay and Paternity Pay.
- £25 Million Free Insurance Cover – £10 million Employers Liability Insurance, £10 million Public Liability Insurance and £5 million Professional Indemnity Insurance.
- Churchill Knight Rewards* – our exclusive discount scheme that can save you money when shopping online, visiting the high-street, eating at your favourite chains, visiting much-loved attractions, and more!
- Your own Account Manager – ensuring communication is easy and you know exactly how to get in contact with us should you need to.
- Same Day Faster Payments – allowing us to pay you on the same day we receive your funds from your recruitment agency.
More information on our umbrella company benefits can be found here.
If you are interested in joining Churchill Knight Umbrella or you would like more information on our service, please complete the short form on this page and we will get back to you shortly.
Alternatively, you can give our friendly and professional team a call on 01707 871622.
We hope this has helped to answer ‘how to start using an umbrella company’. However, if you still have questions, please check out our umbrella FAQs or contact us for advice.
*Please note, Churchill Knight Rewards is part of our premium umbrella service and is an optional extra.