Umbrella companies for nurses explained

As a locum nurse, you may consider working with an umbrella provider to organise your payroll. However, if you’re used to being a full-time employee, the idea of letting a third party control your salary can sound confusing at first. In this blog, we explain how umbrella companies work, as well as the potential benefits and risks involved. 

What is an umbrella company? 

Umbrella companies act as the middleman between the employee and the agency they are working for. The umbrella provider is responsible for processing payroll for the temporary worker – in this case, the locum nurse. 

Tax deductions, national insurance contributions and other related expenses are automatically deducted by the umbrella, so you don’t have to do any of the work.

How do I register with an umbrella company? 

It’s free to register with an umbrella company, just give them a call and make sure to have your contact details, National Insurance Number and any other relevant info at the ready (e.g. the name of your agency). You will also be asked whether or not you’re paying back a student loan and which payment plan you are on (check this here). 

What are the pros?

When you sign up with an umbrella, you become their employee. This means you are entitled to the same employee benefits as full-timers, including pension schemes, holiday pay and statutory sick pay. 

You’ll also receive continuity of employment status, which is highly beneficial for those looking to take out a loan or mortgage. 

What are the cons? 

Unfortunately, not all umbrella companies are compliant with UK tax law. Here’s a few warning signs to look out for: 

• Claims to save you money on tax
• Your payslip and your bank statement don’t match
• They are pretty much impossible to contact
• The take home pay they are offering seems too good to be true

If you think you could be working through a non-compliant umbrella, make sure to report it to HMRC as soon as possible. 

Can you switch from your umbrella provider mid-contract? 

Yes, if you change your mind for whatever reason, you have the option to swap umbrellas. Just let your current provider know, request a p45 and alert your recruitment agency about the switch. 

Mint Umbrella is accredited by Professional Passport so you can count on us to be reliable and transparent with your payroll. 

Get in touch with the Mint team today via [email protected] to find out more about working with us.