Umbrella companies offer a straightforward and compliant way to get paid as a contractor. You can register for the service and be set up and ready to get paid in minutes. So, how exactly does an umbrella company work?

How does an umbrella company work?

When you register with an umbrella company, they will process the payment for the work completed for your end hirer – ensuring the correct tax and National Insurance Contributions (NICs) are paid to HMRC on your behalf. Becoming an employee of an umbrella company and getting paid for your temporary assignments offers a straightforward way to operate, as there is very little ongoing administration. All you will need to do throughout your time with an umbrella company is ensure you correctly submit the hours you have worked – if required by your recruitment agency or end hirer.

A step-by-step overview of how an umbrella company works

Here is a step-by-step overview of how an umbrella company works and the roles of you (the contractor), us (Churchill Knight Umbrella), your recruitment agency and your client:

  • Call us on 01707 871622 and let us know you want to register with our umbrella service. Alternatively, you can complete our online registration form, and we’ll call you back to complete the sign-up process.
  • Your recruitment agency or client will enter into an agreement with Churchill Knight Umbrella, and each will sign a contract agreeing to the terms of the business relationship. They will also exchange important payroll information.
  • Once you’ve registered, you will receive a welcome email. The welcome email contains important information about the service and explains the following steps to ensure you get set up and ready to be paid.
  • As part of the onboarding process, you will be asked to provide the following documents: a copy of a P45 or a completed Starter Checklist for PAYE, a signed contract of employment, and proof of your identity and right to work in the UK. Umbrella companies can only legally pay you once they receive these documents.
  • Depending on your recruitment agency or end hirer’s payroll processes, you may be required to submit a timesheet to your agency or end hirer and your umbrella company. Not all recruitment agencies or end hirers require you to submit a timesheet to your umbrella company – if you are unsure, please check with your umbrella company. As an employee of Churchill Knight Umbrella, you can submit your timesheet or log your hours using the My Digital mobile app or portal. You will be sent the login information when you register.
  • Once your timesheets have been approved by your recruitment agency or end client (if you are required to submit a timesheet), Churchill Knight Umbrella will invoice your recruitment agency or end hirer accordingly.
  • Your recruitment agency or end hirer will arrange payment per the terms and conditions outlined in the agency assignment (also called the assignment schedule).
  • When you are due to be paid, your agency or end hirer will send the funds for the hours you’ve worked to Churchill Knight Umbrella.
  • Churchill Knight Umbrella will process the payment and make the required tax deductions, and we will also deduct our margin. The tax deductions will be sent to HMRC on your behalf.
  • You will receive a net payment (after tax deductions) and a payslip.

Are you an employee of Churchill Knight Umbrella?

Churchill Knight Umbrella is a SafeRec-certified umbrella company, which means that every time you are paid, you will receive a payslip audit report from Payslip Buddy (powered by SafeRec). Payslip Buddy is free of charge for all Churchill Knight Umbrella employees and allows you to check that we are paying you compliantly and that all deductions are correct. You can log in to Payslip Buddy anytime to check previous payslips.

Benefits of using Churchill Knight Umbrella for your payroll

Since launching in 2017, we have quickly become one of the most popular umbrella companies in the UK and process payroll for thousands of contractors and freelancers each week. We have a range of payroll services to ensure that temporary workers in any industry receive a compliant payroll service they can trust.

There are plenty of benefits of using our payroll service, including:

  • Peace of mind that you are receiving a compliant payroll service that’s to our SafeRec certification and FCSA accreditation.
  • Quick and easy registration process over the phone or via our online registration form.
  • Ongoing support from our dedicated Onboarding and Customer Service Team to ensure you are supported throughout the registration process and your time as an employee.
  • A comprehensive insurance package including £10 million Employers Liability Insurance, £10 million Public Liability Insurance and £5 million Professional Indemnity Insurance.
  • Employee Benefits, including Statutory Sick Pay and Statutory Maternity/Paternity Pay.
  • Same Day Faster Payments.
  • Access to My Digital, our umbrella payroll app and portal.
  • A salary sacrifice service which is ideal for contractors who want to save tax-efficiently for retirement and boost their personal pension pot.
  • Churchill Knight Rewards is our comprehensive reward scheme with fantastic benefits and savings.
  • We offer a range of services to suit contractors’ different payroll requirements: Churchill Knight CIS, self-assessment tax return service, wealth management, and umbrella payroll for drivers.

To discover the benefits of using Churchill Knight Umbrella for your payroll, please call our Sales Consultants on 01707 871622. They will be happy to discuss the service with you.

Request a tailored take-home pay calculation

You can use our instant umbrella company calculator tool to get an estimated take-home pay calculation. Alternatively, for a fully customised and accurate take-home pay calculation based entirely on your circumstances, please complete the short form on our website or call our Sales Consultants on 01707 871622.