After completing your research, you may decide it’s time to register with your preferred umbrella company. However, before an umbrella can process your payroll, there are several stages to the registration process that you must complete to become an employee of the umbrella. In our latest video, we explain the umbrella company registration process. Scroll down to watch the video and read the transcript.
Transcript – how do you register with an umbrella company?
Before registering with an umbrella company, you should identify a few compliant providers you like the look of and request a take-home pay calculation from each. This is a document that will show the expected pay retention. Compliant umbrella companies will show all of the legal deductions that will be made to your assignment rate. They will also include their margin, which is taken at gross. Choosing the umbrella company with the lowest margin will help you retain more of your pay, but they may not provide a quality service. Therefore, don’t just focus your search for an umbrella solely on margins.
Once you have found an umbrella company you want to join, the registration process will commence. Firstly, call them and let them know you’re ready to register. Initially, you will be required to fill out an online form or provide a series of information over the phone. The umbrella will need this to employ you legally. The information you must provide will include full name, address, contact details, NI number, assignment information, bank information, and more.
Once you have completed the initial registration process, there are more steps to complete before you officially become an umbrella company employee. You must provide proof of your identity by submitting a copy of your passport. If you are not a UK national, you will also need to provide evidence of your right to work in the UK by sharing your Settled Status 9 Digit Share Code. More information about this is available on the UK government’s website.
To ensure you are placed on the correct tax code and pay the right tax, the umbrella you are joining will ask you to provide them with an up-to-date P45 document. If you don’t have one – don’t worry. You can complete a government form online in a couple of minutes called the Starter Checklist for PAYE.
When you have provided all the necessary information to the umbrella, you will be sent a contract of employment outlining the terms of your employment with the umbrella company. You must read this document thoroughly and only sign and return it if you are entirely happy with its content. If you have any questions or concerns, immediately contact the umbrella company.
Assuming you are happy with the content in the employment contract and you sign and return it – you have completed the registration process with the umbrella company and will be set up and ready to be paid. Ensure you understand the procedures you must adhere to – to be paid on time, such as submitting timesheets. All compliant umbrella companies will process payroll following HMRC’s tax system called Pay As You Earn. However, procedures between umbrella companies may vary slightly.
Before choosing an umbrella company, always make sure they are compliant. We recommend that you only seek the services of an umbrella company with an FCSA or Professional Passport accreditation because these businesses have undergone strict audits to ensure they operate compliantly and in the best interests of their employees.
Please visit the new Umbrella Companies YouTube Channel for over a dozen helpful videos
The team at umbrellacompanies.org.uk has been busy creating some basic but informative videos about important umbrella company-related topics. Our new YouTube Channel is growing quickly, and we would appreciate it if you checked it out!
Top 10 umbrella companies
There are over 500 umbrella companies in the UK, and choosing the right one for your payroll may seem a daunting task. To help make the process easier for our readers, we have collated a list of our top 10 umbrella companies. All of our top 10 are accredited by either the FCSA or Professional Passport, and some have special offers at the moment.
