Registering with an umbrella company in 5 simple steps

If you’re inside IR35, you may explore the option of using an umbrella company for your payroll. Registering with an umbrella company is straightforward, and you can be set up and ready to get paid in under 15 minutes. Continue reading to discover the five simple steps to take to register with an umbrella company.

1. Find an umbrella company

Before you register with an umbrella company, you need to decide which one would be most suitable for you and your circumstances. You need to think carefully about the type of assignments you usually accept and focus your search around these criteria. For example, you may require sector-specific insurances, which some umbrella companies may not provide. We strongly recommend you only consider FCSA accredited providers because they will have been carefully vetted to ensure their processes are compliant with UK tax law and HMRC regulations.

2. Contact the umbrella company to begin the registration process

Most umbrella companies will offer you the option to register over the phone or via an online form on their website. The registration process should take no longer than 15 minutes, and you will be asked to provide information about your assignment and end client or recruitment agency, as well as personal information and contact details. If you are new to contracting, the consultant will talk you through how an umbrella company works, your ongoing administrative tasks and provide you with important information about the next steps to complete the registration process. It’s also an excellent opportunity to ask any questions you might have regarding the registration process or working via an umbrella company.

3. Complete the registration process

You will then be sent a welcome email that will detail the steps you need to take to complete the registration process and provide you with important employee information and contact information. To complete the registration process and ensure the umbrella company is legally allowed to pay you, you will need to provide a copy of your P45. If you don’t have a P45, you can complete HMRC’s New Starter Checklist, giving the umbrella company the same information. You also need to provide a copy of your identity, for example, a passport or birth certificate and any applicable visa or work permits and your signed contract of employment.

4. The umbrella company will enter into an overarching agreement with your agency or end client

Your umbrella company will contact your agency or end client and will exchange payroll information and assignment details. They will also enter into an overarching agreement and will sign a contract agreeing to these terms.

5. Submit your timesheet for payment

Each week, you will need to submit the hours you have worked to your umbrella company so they know how many hours to invoice your agency or end client for. Your agency or end client will then send over the funds to your umbrella company to process the tax deductions and pay you the net amount directly into your bank account. You will also receive a payslip each time you are paid, showing the exact deductions that have been made to your pay.

Are you interested in registering with Churchill Knight Umbrella?

From initial sign-up through to your contract end, our expert team will support you every step of the way. We have recently partnered with My Digital – an industry-leading provider of umbrella software. The new online portal and app are really easy to use, and submitting your timesheets and downloading your payslips has never been easier!

To sign-up with our umbrella service or for more information about how we can support you, please give our expert team a call on 01707 871622. You can also request a call back for a time that suits you by completing the short form on our website.