How often will I pay my umbrella?

When you register with an umbrella company, you may wonder how often you will be required to pay it. Continue reading to find out how you pay your umbrella company and how often you will pay it.

What is an umbrella company margin?

If you are considering registering with an umbrella company, you may wonder how often you will pay the umbrella company. Umbrella companies will deduct a margin to cover the company’s operating costs, such as staffing and administrative costs.

Compliant umbrella companies will only ever generate income from the margin they charge to temporary workers; this is the only money they will keep. The rest of the deductions to your pay are tax deductions, pension deductions (unless you opt-out), and student loan repayments (if you are paying back a student loan), and these deductions will be sent to the government or pension provider. The margin is the only thing that will differ between compliant umbrella companies.

Umbrella companies will deduct the margin from the funds they receive for the assignment rate from your recruitment agency or end client before processing your payroll and paying your net salary (after tax deductions) into your bank account. For more information about the deductions that will be made to your pay when working via an umbrella company, please visit the government’s website.

How often will I pay my umbrella?

The margin is the amount of money that an umbrella will deduct every time they process your payroll – usually weekly or monthly. They will not charge a margin for the weeks/months you do not work, as they will not be processing a payment for you.

Churchill Knight Umbrella follows the payment schedule set by the recruitment agency or end client. Therefore, how often you will be paid will depend on whether your recruitment agency or end client follows a weekly or monthly payment schedule. If you are paid weekly, Churchill Knight Umbrella will deduct a margin every week, but we will deduct a monthly margin if you are paid monthly.

Request a take-home pay calculation

Are you interested in joining Churchill Knight Umbrella? Churchill Knight Umbrella is an FCSA-accredited and SafeRec-certified umbrella company providing contractors and freelancers with a compliant payroll service. Since we launched in 2017, we have quickly become one of the most popular umbrella companies in the UK, and we help thousands of contractors get paid each month.

If you want to learn more about our umbrella service or request a take-home pay calculation, please call us on 01707 871622.