Onboarding Q&A: Everything you need to know before registering with an umbrella company

Our latest article outlines everything you need to know about onboarding with an umbrella company, from the initial stage of requesting a take-home pay calculation through to getting paid your net salary for the very first time.

What is the process from registration to onboarding and getting paid via an umbrella company?

Registering with an umbrella company does not take long. And, providing you have returned the required documents to complete the onboarding process, you can be ready for payment the same day. We will outline the steps you can expect to take, from registration to getting paid via an umbrella company.

Contact the umbrella company for a take home pay illustration

Once you have narrowed down your search of potential umbrella companies, you may decide to contact a few to find out more about their service and to request a take home pay illustration. We strongly recommend you only consider FCSA accredited providers as their internal processes and procedures will have been carefully vetted to ensure they comply with UK tax law and HMRC regulations.

If you would like to request a tailored take home pay illustration from Churchill Knight Umbrella, please get in touch with our expert sales team by calling 01707 871622. Alternatively, you can complete the short form on our website.

Registering with an umbrella company

Most umbrella companies will offer you the option to register over the phone or via an online registration form on their website. The registration process should take no longer than 15 minutes, and you will be asked to provide the following information:

• Full name – which must match the name on your passport or right to work documents
• Date of birth
• Contact information such as telephone number and email address
• Your address
• National Insurance Number
• Bank Account Information – this cannot be a business bank account
• Whether or not you have a student loan
• Information about your assignment
• Your recruitment agency or end clients contact information
• The documentation and identification you will need to provide

You will receive a welcome email

Once registered with the umbrella company, you will be sent a welcome email explaining the following steps to complete the onboarding process. The welcome email will also include information about how to submit a timesheet (if required) and the documents you will need to send to your umbrella company to enable them to pay you legally. You will also receive any additional information you may need, such as the pension auto-enrolment provider and helpful contact information for any queries you may have.

The umbrella company will exchange contracts with your agency or end client

When you register with an umbrella company, they will ask you to provide contact information for your recruitment agency or end client. The umbrella company will contact your agency or end client to let them know you have registered for the service, and both parties will exchange contracts, payroll and assignment information.

What documents are required to complete the onboarding process?

When you register with an umbrella company, your offer of employment is usually subject to you returning your signed contract of employment, proof of your identity and right to work in the UK, and a copy of your P45 or HMRC’s new starter checklist.

Contract of Employment

When you register with an umbrella company, you will be sent a contract of employment. The contract will outline the standards and practices the umbrella company expects you to abide by while employed by them. When you sign the contract, you will have access to statutory employee rights – just like a permanent employee. These include Maternity/Paternity Pay and Sick Pay. Please visit the government’s website for more information about statutory employee rights. You must read the contract thoroughly and only sign and return the document if you are happy with the terms of employment.

Proof of Identity and Right to Work

It is a legal requirement for umbrella companies to prove that you are eligible to work in the UK. Therefore, you will be asked to provide a copy of your identity and right to work in the UK. If you are a British or Irish Citizen, you can use the photo page of your passport or provide a clear photocopy of your Birth Certificate. If you are not a UK national, the umbrella company will ask you to generate a share code via the government’s online right to work checking service. You will need to send the umbrella company the share code and your date of birth to enable them to access the government’s checking service.

P45 or New Starter Checklist

The final documentation you will need to provide your umbrella company is a P45 from the current tax year. This will ensure you are put on the correct tax code, and the proper tax deductions are made to your pay. If you do not have a P45 from the current tax year, you can complete the government’s Starter Checklist for PAYE form and send this to your umbrella company.

Why can’t umbrella companies sponsor your visa?

Only the company for which the worker will be performing the work directly can sponsor the individual. An umbrella company acts as an intermediary and supplies workers’ services to an agency or end client. Therefore, they are not permitted to obtain a sponsorship license for contractors using their service as the worker would be completing work for someone else. Any umbrella company offering sponsorship will almost certainly have its license revoked if they are found to be supplying contractors to a third party.

Submitting a timesheet and getting paid

If you are required to submit a timesheet to the umbrella company, you will be given instructions on how to do this and the deadlines you must adhere to. Every umbrella company has their own timesheet process. However, the most common ways to submit a timesheet are via an online app, portal, or secure email. Once the umbrella company has received your timesheet, they will raise an invoice with your recruitment agency or end client for your completed work. The recruitment agency or end client will send the funds to the umbrella company to process the tax deductions and pay the net amount into your bank account.

Not all contractors must submit a timesheet as some agencies or end clients are self-billing. When the contractor is due to be paid, the agency or end client will send the funds for the work completed. The umbrella company will process the tax deductions. The umbrella company will process the tax deductions and make a net payment to your bank account. With each payment, you will also receive a payslip detailing the amount you have been paid and listing the tax deductions made to your pay.

Contact us today for a tailored take home pay illustration

If you want to learn more about our FCSA accredited umbrella service or request a tailored take home pay illustration, please call us on 01707 871622. Alternatively, you can complete the short form on our website and request a call for a time that suits you.