Contractors and freelancers have a few payroll options to consider when taking on a contract or project role. These include setting up a limited company, working through an umbrella company or operating as a sole trader. Because most recruitment agencies won’t work with sole traders, the first two options are the most common in the UK.

An umbrella company is an easy, hassle-free payroll option that works very similarly to permanent employment. Umbrella Company UK is ideal for first-time contractors, public sector contractors, low to mid-pay contracts, short-term contracts and more.

Umbrella Company UK Who Uses Umbrella?

Why use an umbrella company?

Using an umbrella company like Umbrella Company UK is the easiest way to get paid, and here’s why:

  • The sign up process is fast and straightforward – fill out a quick form and get signed up the same day
  • Minimal administration – around 15 minutes per week
  • There are no joining or leaving fees
  • All tax and National Insurance (NI) is paid through PAYE by the umbrella company
  • All you have to do is send us your completed and signed timesheets (to timesheets@churchill-knight.co.uk)

Contact us to find out more, or if you’re ready to sign up to an umbrella company fill out Umbrella Company UK’s registration form.

How does an umbrella company work?

By signing up to an umbrella company like Umbrella Company UK, you become its employee for tax and NI purposes. Once you’ve sent us your completed and signed timesheets and your agency (or end-client, if you don’t work through an agency) pays the umbrella company, it will make your tax and NI deductions and pay you to your personal bank account. Visit this page to find out more.

Once Umbrella Company UK has made tax and NI deductions on your behalf, it will be sent to HMRC and you will receive a payslip just like a permanent employee. The deductions made will be listed here for your information.

If you meet the requirements for auto-pension enrolment, you will also be signed up to Umbrella Company UK’s pension scheme. You can opt-out of this at any time.

Can't talk now? No problem!

Is an umbrella company right for me?

The best way to find out if an umbrella company is right for you is to contact Umbrella Company UK for a no-obligation consultation. We will go over the service with you in detail and help you decide whether it meets your needs based on your working circumstances.

An umbrella company could be right for you if:

  • This is your first contract role
  • You are working a contract role on the side of your permanent job
  • You are only contracting for 3 months or less
  • You are in the public sector or education
  • You prefer no paperwork or administration

An umbrella company is simple and easy to use – and using an established, compliant provider like Umbrella Company UK will give you peace of mind. We do not operate an offshore scheme or claim to offer you 90% take home pay; these schemes are non-compliant and could land you in trouble with HMRC.

If you choose to be a contractor long-term, consider setting up your own limited company. Limited companies can be a more tax-efficient option, which is why many contractors move from umbrella to limited when they feel comfortable as a contractor. Churchill Knight can also support you in this process.

Umbrella Company UK

Umbrella Company UK’s service will give you:

  • Fast set-up
  • No joining or leaving fees
  • Statutory Sick Pay, Maternity Pay, Paternity Pay and Annual Leave – just like a permanent employee
  • Only 15 minutes of administration per week or less
  • Peace of mind – we are fully compliant and audited regularly
  • Full insurance cover – £10 million Employers Liability, £10 million Public Liability, £5 million Professional Indemnity

Read about the benefits of Umbrella Company UK.

Can't talk now? No problem!

Have you seen this?