Umbrella Payroll for
Recruitment Agencies

Umbrella payroll is a way that people who work as contractors or freelancers are paid by a middle company, which is often called an “Umbrella company.” Under this arrangement, the Umbrella company hires contractors and takes care of administrative chores like processing payroll, taking out taxes, and paying National Insurance. 

Using the Umbrella payroll model is a pretty simple process. An agency forms a contract with the Umbrella company that lays out what areas of responsibility the Umbrella company has. These duties involve employing workers, paying their wages according to all relevant information and laws, and then billing the agency for the time each worker has worked.

Contractors and workers send their timesheets along with expenses to the Umbrella company. The Umbrella company then calculates their pay and takes out any taxes or fees that apply. This method makes it easier for contractors to deal with paperwork because they don’t have to set up their own limited business or deal with complicated payroll procedures.

There are lots of great benefits that come with choosing the Umbrella payroll model as a recruitment agency. These benefits include:

• Reducing employment costs as National Insurance is not charged to the business, the Umbrella company takes care of this.
• Saving time by outsourcing admin, in turn saving your business money.
• Guaranteed compliance as contractual and legal obligations are passed to the Umbrella agency.
• Increased flexibility to work with workers on both long and short term contracts as Umbrella agencies will be used to dealing with both.

Outsourcing payroll to an umbrella agency is a good idea for a variety of reasons if you are a recruitment agency, as it ensures compliance, saves time, and reduces the risk of errors that can lead to penalties. Moreover, the agency can provide invaluable expertise in navigating complex payroll landscapes.

Choosing Bishop Oak as your umbrella payroll provider enhances these benefits significantly. We specialise in collecting and authenticating IDs, checking all workers’ rights to work via Trust ID, and assisting with all KID documents. We also provide proof of CIS and VAT payments upon request and ensure audit compliance through Professional Passport. Furthermore, our commitment to excellent customer service means that you will have a dedicated account manager who is accessible during regular business hours and after hours, ensuring that help is always at hand whenever you need it. This comprehensive support system is designed to make payroll management as smooth and efficient as possible for your agency.