As an independent professional, there are two principal payroll options available to you: contracting through your own limited company or using an umbrella company. Here is a short summary of Churchill Knight Umbrella and how we work (please click here for a more thorough guide).
Opting to use an umbrella company as your payroll provider is the easiest way to get paid as a contractor. The sign up process is incredibly straightforward and there are no joining or leaving fees when you choose Churchill Knight Umbrella as your payroll provider.
When you sign up to Churchill Knight Umbrella, you will become our employee and we will pay your salary through PAYE (Pay As You Earn). You do not have to worry about calculating your tax and National Insurance Contributions (NIC) because we will do this and send the funds to HMRC for you. You will receive a payslip like a permanent employee and the appropriate deductions will be listed for your information.
Your administrative requirements when using Churchill Knight Umbrella are minimal and you will only be required to upload your signed timesheets and any receipts for expense claims. To help make this as easy as possible, you will have access to the Churchill Knight Umbrella online portal. On average, you should expect to spend less than 15 minutes on paperwork per week.
Using an umbrella company is an excellent way to kick start your contracting career. Umbrella companies are often the preferred option for first time contractors because of the fast and uncomplicated setup. If you decide that contracting is something that you want to do for the foreseeable future, you might be better suited to setting up and becoming the director of your own limited company. This may sound like a complex transition, but with Churchill Knight & Associates Ltd, switching between our umbrella and accountancy services is hassle free.