How do I leave an umbrella company?

You may be considering leaving your umbrella company if you are unhappy with the service or have found a more affordable margin with another provider. Continue reading to discover how to leave an umbrella company and the steps you need to take to ensure a seamless transition.

Why should you consider leaving an umbrella company?

There are many reasons why contractors decide to leave an umbrella company. Perhaps they are not receiving the level of service they would like, they are paid late or incorrectly, they have found a better deal elsewhere, or they could have discovered that the umbrella company they are using is a non-compliant provider. Ultimately, it is important to leave an umbrella company that is not providing good service and find an umbrella company that offers a compliant and reliable service.

How do I leave an umbrella company?

If you want to leave an umbrella company but are unsure about the processes involved, there is no need to worry. Changing umbrella companies is incredibly easy, and there are a few simple steps to follow to make sure the transition is seamless.

All you need to do is notify your current umbrella company that you are leaving and request a P45 once you have received your final payment. Once you have chosen your new umbrella company, you need to contact them to register. Registration can be done over the phone or via an online form and takes at most 5-10 minutes. You must also notify your recruitment agency/end client that you have changed your umbrella company.

To ensure you are efficiently onboarded to your new umbrella company and ready to be paid by them, you will need to sign their contract of employment, provide a copy of your P45 from your old umbrella company and a copy of your ID and right to work documentation.

It is that simple!

Can I leave an umbrella company mid-contract?

The answer is yes – you can leave your existing umbrella company mid-contract and join another one. However, some umbrella companies may require you to provide notice, and some do not. If you are unsure, we recommend checking your contract of employment, which will provide all the information you need, such as whether a notice period is required to terminate your employment with the umbrella company.

Always pick a compliant umbrella company

There are hundreds of umbrella companies in the UK, and with so many to choose from, how do you know how to pick a compliant one? We highly recommend looking for umbrella companies that are FCSA accredited or SafeRec certified—or both.

The FCSA is a professional body dedicated to ensuring the supply chain of temporary workers is compliant with UK tax law. For an umbrella company to get an FCSA accreditation, they must prove they comply with HMRC regulations and abide by the FCSA’s Code of Compliance.

SafeRec, powered by AI technology, has revolutionised payroll compliance within the contractor industry. Every payroll processed by a SafeRec-certified umbrella company is audited in real-time, and the audits are cross-referenced with RTI sent to HMRC. If a payment does not have the correct tax deductions or there are signs of malpractice, SafeRec will notify all members of the supply chain. Contractors also receive a detailed audit report every time they are paid to check if they have been paid compliantly.

Switch to Churchill Knight Umbrella today  

Churchill Knight Umbrella is an FCSA-accredited and SafeRec-certified umbrella company providing a compliant and transparent payroll service to contractors and freelancers in the UK. As well as a compliant payroll service, you can also benefit from £25 million insurance cover, Same Day Faster Payments, support from our dedicated Onboarding and Customer Service Teams, employee benefits, Churchill Knight Rewards and a salary sacrifice service.

If you are interested in switching to Churchill Knight Umbrella, you can request a free and tailored take-home pay calculation now. Our friendly Sales Consultants are also available to discuss a calculation with you on the phone. Please call 01707 871622 to speak to a member of the team.