With the IR35 reforms due to be implemented from April 2021, you may find you require an umbrella company for assignments inside IR35. Registering with an umbrella company may at first seem like a daunting experience. However, please do not worry – it’s actually very straightforward. Continue reading to discover how to register with an umbrella company.
1. Compare Umbrella Companies
Before you register with an umbrella company, you need to find a provider you want to use. If you work through a recruitment agency, they may already have a list of umbrella companies on their Preferred Supplier List (PSL) for you to choose from. If this is the case, we strongly urge you to conduct your due diligence to ensure the umbrella company you are considering is operating in a compliant and ethical manner.
If you have not been given a list of umbrella companies to choose from, a great way to start your search is by taking a look at the FCSA’s Directory of Members. Wherever you begin your search, we recommend only considering FCSA accredited umbrella companies to ensure the company is operating in complete compliance with UK tax law and HMRC legislation. You can work with complete peace of mind knowing that the umbrella company will process your pay compliantly, and you won’t have to worry about receiving an unwanted tax bill in years to come.
2. Contact your chosen Umbrella Company
Once you’ve chosen which umbrella company you want to use, you need to contact them to begin the registration process. Registering with an umbrella company should take no more than 15 minutes, and you can register over the phone or via an online registration form.
As part of the registration, you will be asked to provide personal information and contact details, information about your assignment, and information about your end client or recruitment agency. The umbrella company will also take this opportunity to talk through the service to make sure you understand how an umbrella company works and the steps you need to take to complete the registration process.
3. You will be sent a welcome email
Once you have completed the sign-up process, the umbrella company will send you a welcome email which will explain the next steps you need to take to complete your registration. Your offer of employment will usually be subject to you returning a signed contract of employment, proof of identity, a copy of your work permit or visa (if applicable), and a P45. Please be aware the umbrella company must have these documents before they are legally allowed to pay you. Don’t worry – if you don’t have a P45, you can always complete the Starter Checklist for PAYE on the government’s website. This will provide the umbrella company with the required information they need.
4. Your Umbrella Company will contact your Recruitment Agency or End Client
Your umbrella company will contact your recruitment agency (or end client) to let them know you have registered with their service. Each party will enter into an overarching agreement and sign a contract. They will also exchange important information such as assignment details and schedules and payment information.
5. You are now set up and ready to be paid
You are now set up and ready to be paid, and the bulk of your administrative duties are completed. Your only ongoing administrative task is to send a signed timesheet to your umbrella company, so they know how many hours to invoice your agency or end client for. Most umbrella companies will have a dedicated app, portal or email address for you to submit your timesheets.
Are you interested in registering with an FCSA accredited Umbrella Company?
Umbrella Company UK provides a range of FCSA accredited payroll services, from traditional umbrella PAYE to umbrella specifically for drivers. Our expert team will support you throughout your contracting journey, from initial sign-up through to your contract end.