Working via an umbrella company offers a no-risk payroll option for contract work, especially if you have never worked as a contractor before, you are caught by IR35, or you prefer a more hands-off approach with your finances. We’ve compiled a list of the benefits of using an umbrella company.
You can be registered in under fifteen minutes
Unlike setting up a limited company, the registration process for an umbrella company is swift in comparison. You can register over the phone with a consultant who will talk you through the service, answer any questions you may have and take the details required to complete the registration.
If you are a seasoned contractor and are familiar with how an umbrella company works, there is the option to register online via the umbrella companies’ website. If this is your preferred option, you will need to complete the online registration form with the required contract and personal information – this should take no longer than five minutes.
Once you have registered, you will receive a welcome email with information about the final steps to complete your onboarding process. Without completing the entire onboarding process, the umbrella company will not be able to pay you legally. Make sure you read all of the emails you are sent thoroughly and follow the instructions carefully.
They are easy to use and there is very little ongoing administration
Once you have registered, there is very little ongoing administration. To ensure you get paid on time, all you need to do is send a signed copy of your timesheet to your umbrella company and recruitment agency. The umbrella company will then raise an invoice to your end client or recruitment agency for the hours you have worked.
Access to a comprehensive insurance package
When you register with an umbrella company, you will benefit from access to free insurance cover as part of the service. The level of cover you will receive will differ between umbrella companies, and the roles their service caters for.
For example, when you register with Umbrella Company UK, you will be protected by:
- £10 million Employers Liability Insurance;
- £10 million Public Liability Insurance;
- £5 million Professional Indemnity Insurance.
Umbrella Company UK also has an umbrella payroll service which caters for HGV drivers. When you register with Umbrella Company UK: Driver’s, you are protected by the insurance coverage listed above, as well as driver’s negligence insurance – which HGV drivers require in the UK.
Employee benefits
When you register with an umbrella company, you are entitled to Statutory Benefits, including Maternity/Paternity Pay and Sick Pay – just like a permanent employee.
Umbrella companies are used for any role or contract length
Umbrella companies are the perfect option for almost every type of contract role. Whether you are a contracting veteran looking for an umbrella company for a 24-month contract, or you’re new to contracting and have an 8-week assignment coming your way – an umbrella company may be the best option for your payroll.
Umbrella companies also offer the perfect payroll solution if you are working on multiple contracts alongside each other, as it gives you continuity of employment. When you register with an umbrella company, they are seen as your employers, which means your tax code won’t be negatively affected, and HMRC won’t overtax you.
Umbrella companies offer an inclusive service
When you become an employee of an umbrella company, all tax and National Insurance Contributions (NICs) are sent to HMRC on your behalf. As long as you have sent your signed timesheet to the umbrella company, you should be paid correctly and on time each week/month.
It is important to remember that every compliant umbrella company will process your payment in the same way, and the same deductions will be made for tax and NICs. The amount of tax due will depend on your tax code which is set by HMRC – not the umbrella company. The only thing that will vary between providers is the margin they deduct for their service, and this is the only thing that will alter your take-home pay.
When you register with Umbrella Company UK, there are no joining or leaving fees, and no hidden costs associated with our service. The only deduction we will make for processing your payroll is our margin, and this will only be for the weeks you are working and paid through us.
Are you looking for a compliant and FCSA accredited umbrella company?
When you register with Umbrella Company UK, you get complete peace of mind. We are proudly accredited and audited by the FCSA to ensure our payroll service meets their strict code of compliance. Rest assured – your payroll is in good hands!
Are you interested in finding out more about our umbrella services or would like an accurate and honest take-home pay projection? Please give our friendly team a call on 01707 669023 or complete the short form on our website and we will be in touch with you soon.
