Working via an umbrella company is one of the easiest ways to work if your contract is inside IR35. You can be onboarded and ready for payment in under 15 minutes and use the umbrella company as and when you need for contracts inside IR35.
When you register with an umbrella company, you will become an employee of the umbrella company and have the same employment rights as any other employee in the UK. These benefits include auto-enrolment into a pension, where you meet the qualifying criteria and statutory employee benefits such as sick pay and maternity/paternity pay.
Your pay will be operated through PAYE, and the umbrella company will make all the required income tax and employee NIC deductions and pay this to HMRC on your behalf. It is also worth noting that all compliant umbrella companies must make the same tax deductions set by HMRC. This means there should be very little difference in the take home pay rates you are offered between providers.
The only thing that will alter your take home pay is the umbrella company’s margin. If you are offered a significantly higher take home pay from an umbrella company, beware, you may be engaging with a tax avoidance scheme. This could result in HMRC coming after you later for unpaid taxes.
There are also some great benefits when you register with an umbrella company. The exact benefits will vary depending on the umbrella you choose, but when you register with Churchill Knight Umbrella, you will receive the following:
- Peace of mind because you’ll be paid by a proud FCSA accredited member.
- A competitive margin.
- Access to My Digital, our state-of-the-art mobile app and portal.
- Ongoing support from our dedicated onboarding and customer service team.
- £25 million insurance cover.
- No tie-in period – you’re free to use our service as frequently as you like without having to worry about joining or leaving fees.
- Minimal administration.
- Same Day Faster Payments.
- A salary sacrifice service – if you are interested.
For more information about our service or to request a take home pay illustration, please call us on 01707 871622.