When you register with an umbrella company, your offer of employment is usually subject to you returning your signed Contract of Employment, proof of identity, your right to work in the UK, and a copy of your P45 (or HMRC’s New Starter Checklist). But why are these documents required? Continue reading to discover why umbrella companies will request these documents as part of the onboarding process.
Contract of Employment
When you register with an umbrella company, they will require you to read and sign a Contract of Employment. The contract will outline the standards and practices that they expect you to abide by while working as an employee of their company. When you sign the contract, you will have access to statutory employment rights, including Sick Pay and Maternity and Paternity Pay. For more information, please visit the government’s website.
Proof of your identity and right to work in the UK
As your employer, your umbrella company must see proof of identification and your right to work in the UK before they are legally allowed to employ you. The identity check confirms an individual’s name, date of birth and address. The right to work checks ensure all their employees have a right to work in the UK. The right to work check consists of validating a passport or birth certificate and any right to work documentation. These will probably be a visa or work permit, and they’re required to confirm whether the applicant is legally allowed to work in the UK.
These checks are often automated and carried by uploading a clear photocopy or high-quality photograph of the document to online software. The software will cross-reference the candidate’s details to ensure the date of birth and name are linked to the address provided. The software will also verify the legitimacy of the document and ensure it has not been reported or lost, stolen or compromised, and validate visa documentation.
A copy of your P45 or HMRC’s New Starter Checklist
Before you begin employment with your chosen umbrella company, you will need to provide them with your most recent P45.
What is a P45?
Your P45 will provide your new umbrella company with important payroll information such as:
- Your tax code at the time of leaving your last job
- How much taxable salary you’ve been paid over the current tax year
- The amount of tax that has been deducted during the tax year
Without your P45, your umbrella company won’t be able to make sure you’re paid using the correct tax code. This means you could end up paying more tax than you need to or be put on an emergency tax code – although you can reclaim this. A P45 is only valid throughout the tax year in which it has been provided. If you don’t have a P45 from the current tax year or you do not have a P45 at all, you can complete a Starter Checklist for PAYE.
What is a Starter Checklist for PAYE?
If you do not have a P45, you can complete a Starter Checklist for PAYE. The Starter Checklist for PAYE is used to gather important information about a new employee’s career history in the UK for tax purposes. The umbrella company can use the information collected from the checklist to ensure the correct tax code is applied and the right amount of tax is deducted.
Are you interested in registering with an umbrella company?
If you are interested in registering with our umbrella service or finding out more about how we can support you, our expert team would be happy to schedule a call with you. From initial sign-up through to your contract end, we’re dedicated to ensuring our employees have a seamless experience with us, and we will be on hand to answer any questions you may have.