Will I pay an umbrella company margin if I am not working?

If an umbrella company employs you, you may wonder if you will still pay the umbrella company margin if you are not currently working on an assignment. Continue reading to discover if you must pay the umbrella company margin if you are not working.

Will I pay an umbrella company margin if I am not working?

Compliant umbrella companies will only deduct a weekly or monthly margin for the weeks or months you have worked for and for which they have processed a payment. If you are not working and they are not processing a payment for you, you will not need to pay the umbrella company margin.

Does the umbrella company still employ me if I am not working?

Yes, one of the benefits of working via an umbrella company is continuity of employment. When you register with an umbrella company, you will sign an overarching contract of employment, which means that you can accept different assignments with different end clients, but you will still be seen as having one employer—the umbrella company.

Additionally, if you have a break between assignments, you are still employed by the umbrella company and do not have to register again when your next assignment starts. Continuity of employment is particularly important if you have several contracts at the same time.

By having one consistent employer (us), continuity of employment makes it easier for you to source external financings, such as a business bank loan or mortgage, and your rates are likely to be favourable compared to a self-employed worker using an alternative payroll method.

Benefits of Churchill Knight Umbrella

There are plenty of benefits when you use our umbrella service, including:

• SafeRec certification – Churchill Knight Umbrella is a SafeRec Certified umbrella company, and you can log in to Payslip Buddy (powered by SafeRec) to check your payslips – to ensure they’re accurate, compliant and you’re being paid the correct amount. You will also be sent real-time audits each time we process your payroll.
• FCSA-accredited—We are also accredited by the Freelancer and Contractor Services Association (FCSA), which further proves that we are 100% committed to compliance within our sector and ensuring our employees are paid correctly, transparently, and efficiently.
• Comprehensive insurance cover – When you join Churchill Knight Umbrella, you’ll receive £10 million Employers Liability Insurance, £10 million Public Liability Insurance and £5 million Professional Indemnity Insurance.
• Employee benefits – By registering with an umbrella company, you become an employee. As a result, you will have access to Statutory Employee Benefits, including Sick Pay and Maternity/Paternity Pay.
• Thorough onboarding process—Our in–house onboarding department will support every newly registered employee to ensure that everything has been set up correctly, all your questions have been answered, and you’re satisfied with how the service will work and how you will be paid. Once you have been paid for the first time, the onboarding process is complete, but you’ll still receive ongoing support—as and when required.
• Easy registration—Registering with us is straightforward. You can complete a form online (available here) or over the phone (01707 871622).
• Same Day Faster Payments – We run payroll multiple times every day to ensure you are paid on the same day we receive your funds from your recruitment agency or end client.
• No hidden fees, joining or leaving costs – The only income that Churchill Knight Umbrella generates is through the margin we deduct each time we process your payroll, and this will be clearly explained before you register with us. There are no hidden fees, including no joining or leaving costs.
• Salary sacrifice service – Our salary sacrifice service is a great way to boost your personal pension pot and save tax-efficiently for retirement.
• Churchill Knight Rewards – For only £5 extra per week (added to your margin), you can access hundreds of special offers and discounts from popular UK retailers and many leading UK supermarkets. Also included in Churchill Knight Rewards are amazing extras, such as access to a 24/7 consultation service through ‘Your Online Doctor’, savings of up to 20p per litre with a BP fuel card and exclusive gym membership discounts.

Contact Churchill Knight Umbrella today

Churchill Knight Umbrella may be the perfect payroll service for you if you want a compliant way to get paid. Any contractor or freelancer can use us as their PAYE payroll provider, and it is the easiest way to get paid. To request a tailored take-home pay calculation or to learn more about our umbrella service, please call our expert team on 01707 871622.