Umbrella Company Glossary
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There is a misconception that umbrella companies are highly complicated. While there is plenty of information to get your head around, they’re far more straightforward than you might have imagined.
To help you understand umbrella companies better, we’ve created an umbrella company glossary that provides simplified definitions for many of the key terms and topics surrounding umbrella companies. Our site is full of resources to assist contractors and freelancers, and many of the definitions below link to further information that we hope you find helpful.
There are currently 3 Umbrella Company Terms in this directory beginning with the letter R.
R
Registration
Registration with an umbrella company is a reasonably thorough process. Still, it needs to be for the umbrella to register you legitimately and to be able to process your payroll legally. Usually, you will need to undergo the following stages of registration before you can officially become an employee of an umbrella company (and be paid compliantly):
- Request a take home pay calculation to gauge your likely pay retention should you join the umbrella.
- If you want to register with an umbrella, you can usually do so over the phone or by completing an online registration form. You will be required to share several pieces of personal information including name, address, date of birth, NI number, bank information, assignment details, and more.
- Once you have completed the initial registration process, you will need to provide the umbrella company with proof of your identity and Right to Work (RTW) in the UK.
- The umbrella company, as your employer, will send you a Contract of Employment and you will need to read it thoroughly. Only once you have read the entire document and you’re satisfied with its content should you sign and return it. You will also need to provide your umbrella with a P45 document, or a Starter Checklist for PAYE.
- When you’ve signed and returned the Contractor of Employment, you will need to understand the processes involved for you to be paid on time (e.g. uploading timesheets etc.). At this stage, registration is complete and you will be an employee of the umbrella.
- Request a take home pay calculation to gauge your likely pay retention should you join the umbrella.
- If you want to register with an umbrella, you can usually do so over the phone or by completing an online registration form. You will be required to share several pieces of personal information including name, address, date of birth, NI number, bank information, assignment details, and more.
- Once you have completed the initial registration process, you will need to provide the umbrella company with proof of your identity and Right to Work (RTW) in the UK.
- The umbrella company, as your employer, will send you a Contract of Employment and you will need to read it thoroughly. Only once you have read the entire document and you’re satisfied with its content should you sign and return it. You will also need to provide your umbrella with a P45 document, or a Starter Checklist for PAYE.
- When you’ve signed and returned the Contractor of Employment, you will need to understand the processes involved for you to be paid on time (e.g. uploading timesheets etc.). At this stage, registration is complete and you will be an employee of the umbrella.
Reimbursed Expenses
Reimbursed expenses are tax-free business expenses that your recruitment agency or end client has agreed to reimburse you. For example, mobile workers who are required to travel away from their primary place of work may be able to claim certain business-related travel and subsistence expenses.
Right to Work (RTW)
As your employer, it is a legal requirement for umbrella companies to request proof of your right to work in the UK before your employment commences. If you are a British or Irish Citizen, you can provide a clear copy of your passport or birth certificate as proof of your right to work in the UK. If you are a foreign national, please use the government’s online right to work checking service to generate a share code and send this to your umbrella company and your date of birth.