Joining an umbrella company is really straightforward – providing they are compliant and efficient. We’ll talk you through the processes involved in joining an umbrella company – you have nothing to worry about.
Typically, there are 10 steps involved in the sign-up process for an umbrella company but don’t worry, not all of them involve you.
We have summarised them below:
- Contact the Umbrella Company – To register with an umbrella company, the first thing you will need to do is contact them directly, or see if they have an online registration form.
- Agreement – Your chosen umbrella company will enter into an official agreement with your recruitment agency.
- Confirmation of Registration – Once you have provided the umbrella company with the information they need and proof of your identity, you should receive official confirmation email or letter from the umbrella.
- Timesheets – You need to complete timesheets for the hours you have worked. Make sure you get them signed by your end client.
- Email to Agency – Email signed timesheets to your recruitment agency.
- Email to Umbrella – Email signed timesheets to your umbrella company.
- The Umbrella Invoices your Agency – Your umbrella company will invoice your recruitment agency for your pay, based on your submitted timesheets.
- Your Agency Pays the Umbrella – Your agency will pay the umbrella company your salary.
- The Umbrella Processes – The umbrella company will make all of the necessary deductions to your pay, including tax and National Insurance Contributions (NICs).
- You are Paid – You will be sent your salary with a supporting payslip, showing the deductions that have been made.
There are plenty of unethical tax avoidance schemes out there offering you the opportunity to retain up to 90 percent of your pay after tax. Please make sure you avoid these companies at all costs because they are encouraging you to avoid paying the tax and NICs you are expected to.
In 2019, the Loan Charge came into effect. This piece of HMRC legislation states that if a contractor or freelancer has avoided tax by using unethical schemes (even if it was an accident), they can be retrospectively punished and ordered to pay back every penny they are deemed to owe, as well as a potential fine. HMRC are stepping up their efforts to catch tax avoidance and they are not holding back.
So, in summary, yes – it is easy to join an umbrella company!
Churchill Knight Umbrella makes it especially easy and you can be fully registered and ready to get paid in less than 15 minutes! There are also plenty of extra benefits to our service that may surprise you, including free £25 million insurance cover and Same Day Faster Payments.
To find out more information about the benefits of using Churchill Knight Umbrella or to get signed up, please contact our friendly team on 01707 871622 or complete the short form on this page.
You can also register online by completing the form here. Once you have successfully submitted the form, a member of the Churchill Knight Umbrella team will be in contact soon after to finalise the process.