Switching your umbrella company? Here’s what you need to know…

You’ll be pleased to know that switching umbrella companies is a relatively seamless process – provided they’re compliant. Carry on reading for everything you need to know before making the switch.

What is the process?

1.Inform your existing umbrella company as soon as possible (obviously). They will also be able to offer guidance on next steps.

2.Ask for a P45 from your current provider – you’ll be asked for this upon registration at your new umbrella company so that your tax code is correct in their system.

3.Keep your recruitment agency in the loop. In fact, it is best not to sign up with a new umbrella before running it past your recruitment agency, especially if they have a Preferred Supplier List. They will also need to sign a contract with your new umbrella so it’s important they know your situation and approve of the umbrella.

4. Begin the registration process with your new umbrella. This is usually carried out over the phone and the team will ask you for some basic questions to get you set up. Following your initial call you will be sent a ‘Pay Illustration’, so you can get an idea of what your take home pay will look like.

5. Read and sign your new contract!

Can you switch umbrella companies mid-contract?

In short, yes you can! Again, as long as both parties are compliant there shouldn’t be any hurdles – simply follow the steps as outlined above.

Final thoughts

Make sure your new umbrella company is compliant and accredited by either the FCSA or Professional Passport (like us!). If the umbrella in question is offering take-home pay over 85% then give it a wide berth because they are probably avoiding tax…

The team at Mint are here if you have any questions concerning your umbrella company or switching.

Remember, we are an accredited umbrella so get in touch now if you would like to transition from your existing company.

Drop us an email on [email protected] to get started!