Umbrella company tax

Choose a compliant umbrella company, and you’ll be in safe hands

Choose a compliant umbrella company, and you have nothing to worry about in regards to your pay. But how do you know whether an umbrella company is compliant or not? Easy – only consider using umbrella companies that are members of the FCSA.

The FCSA is a leading professional body that is committed to ensuring the supply chain of temporary workers is compliant and ethical. Churchill Knight Umbrella is accredited by the FCSA and has undergone a thorough assessment process.

Don’t believe the negative press that umbrella companies get

Firstly, there are some unethical providers out there who are helping contractors and freelancers avoid paying the right amount of tax and NICs. It may sound tempting to retain more of your hard-earned money, but what these providers are failing to tell their clients is that HMRC are relentlessly targeting tax avoiders, and you could be seriously punished in the future.

Unfortunately, many inaccurate and misleading websites are slating umbrella companies because they are “not compliant”. This is completely untrue. While there are some unethical and non-compliant providers out there, they are also plenty of well-established and honest companies that have helped thousands of contractors get paid on time. As we have already mentioned – opt for an FCSA accredited umbrella company and you have absolutely nothing to worry about.

Is there an Umbrella Company Tax?

Absolutely not!

Compliant umbrella companies will process your salary (PAYE), meaning your tax and NICs will be sent to HMRC on your behalf. However, there is no such thing as ‘umbrella company tax’ and compliant umbrella companies never have (and never will) charge it!

To confirm – compliant providers will not charge you an ‘umbrella company tax’ to use their service. Instead, they will deduct a small margin each time they process your payroll. This margin is taken to cover the umbrella company’s administration, staff costs and the general day-to-day expenses that arise when running a business.

The margin will only apply to you each time the umbrella company pays you. Therefore, if you do not work for three weeks (for example), you will not be required to cover any margin at all during this period.

Contact Churchill Knight Umbrella for a quick take-home pay projection

Founded by experts with over 20 years’ industry experience, Churchill Knight Umbrella is a leading PAYE umbrella company. We have helped thousands of contractors get paid on time and compliantly with HMRC rules and regulations. By choosing us, you can be assured your pay will be processed ethically, and we most certainly do not charge any ‘umbrella company tax’!

Contact us today for a quick and tailored take-home pay projection. Please complete the short form here or give us a call on 01707 871622.