Step 1 – Setting Up Your Employment Record
The first step in your journey is setting up your account with the umbrella company. When you join an Umbrella company you become an employee of theirs, so the terminology may seem unusual. You don’t “sign up” as such, you simply create an employment record.
This typically involves providing essential details such as your personal information, National Insurance number, bank details, and signing a contract of employment with the umbrella company. You’ll also need to submit identification documents for verification purposes.
What to Expect:
- A straightforward onboarding process with our Onboarding team.
- Clear guidance on what documents and identification you need to provide.
- A dedicated point of contact for your next queries.
Step 2 – Your First Pay
We’ll talk about this in more depth in a future blog post, but one of the key differences you’ll notice when working through an umbrella company is how your pay is structured. Your umbrella company will take care of deducting Employers NI and Apprenticeship Levy from the invoice value they receive before deducting your PAYE Income Tax and Employees NI contributions before paying you. Your payslip will include details of all of this, but it’s sometimes hard to understand.
What to Expect:
- An initial payslip that breaks down all the deductions clearly.
- A full explanation of terms like gross pay, PAYE tax, National Insurance, and any other deductions.
- The opportunity to ask questions and clarify any details with your point of contact.
Step 3 – Submitting Timesheets
Your income will be based on the hours you work, so submitting accurate and timely timesheets is essential. Depending on your umbrella company’s system, you may need to submit your timesheet weekly or monthly. The umbrella company will then invoice your client and process your payment.
What to Expect:
- A simple process for submitting timesheets, often online.
- Deadlines for submission to ensure timely payment.
- Guidance on how to submit expenses if applicable.
Step 4 – Getting Paid
This is always an important step. Once your timesheets are submitted and approved, and any expenses are processed, you’ll receive your payment. The umbrella company handles all the tax calculations, ensuring you receive your net pay directly into your bank account.
What to Expect:
- Timely payments based on the agreed schedule.
- A transparent breakdown of your earnings and deductions.
- Access to your payment history through an online portal.
Ultimately, your first month with an umbrella company is about getting familiar with new processes and understanding how your pay is managed. With the support of your umbrella company, this transition should be smooth and stress-free. By the end of the month, you’ll have a solid grasp of how everything works, allowing you to focus on delivering great work for your clients.
