Day to Day Umbrella Company Processes

Umbrella Companies make it very easy to work as a Contractor. All you have to do is generate billings and send in regular timesheets and expense claims… the Umbrella Company does the rest!

Are you a highly skilled contractor on a UK Work Visa? Do you need a Contractor Solution to deal with project billings? If so Commonwealth Contractors can help!

At Commonwealth Contractors we work with Umbrella Companies who specialise in dealing with highly skilled expat contractors. To discuss your situation with a highly experienced advisor call Commonwealth Contractors now on 0330 390 9021 or Submit your Details and we will get right back to you!

What do you need to do?

Complete Timesheets

At the end of each week or month you need to complete either a:

  • Hard Copy Timesheet, OR
  • Insert details into an electronic Timesheet Portal

The Umbrella Company will then raise an invoice to the client or agency and reconcile funds as they arrive to ensure that everything is in order.

Submit Expense Claims

To claim expenses you normally need to complete an expense claim form, attach original receipts to prove that the expense was genuinely incurred and send it in to the Umbrella Company for processing.
It is important to ensure that expenses are claimed in line with the Umbrella Companies expense policy. If they are not in line with the policy they will more than likely be disallowed (which could hold up your payment).

What will the Umbrella Company do?

Process Contracts

A representative of the Umbrella Company will:

  • Contact the Agency or Client to provide Umbrella Company documents (i.e. VAT registration etc)
  • Read through the contract to ensure there are not any onerous terms
  • Sign the final agreement once you have confirmed that you are happy
  • Return a signed copy of the agreement to the Client or Agency

Raise Invoices

Invoices are normally raised as soon as signed timesheets have been provided. However, they may not be required in the case of Self Billing Payments.

Receive Payments

The Umbrella Company will deal with any credit control issues if the Client / Agency has not paid an invoice. If there are issues with a payment the Umbrella Company will resolve them

Process Expense Claims

Once received expense claims need to be checked and approved. The Umbrella Company will ensure that a claim is within policy. If there are any disallowed items the contractor is normally informed and any issues resolved.

Deduct Tax & National Insurance

When running payroll the Umbrella Company will deduct:

  • PAYE Income Tax
  • Class 1 Employees National Insurance
  • Class 1 Employers National Insurance

Tax payments are made to the HMRC on your behalf.

Make Payment

Salary and Expense payments are normally made on weekly or monthly basis depending upon client / agency payment terms. Payments normally take 3 working days to clear further to the BACS payment system.

Provide Payment Documentation

Payslips and either posted out or sent electronically. A breakdown of the payment is normally also provided in order to provide complete transparency.

Find out More

To find out more about Commonwealth Contractors call now on 0330 390 9021 or Submit your Details and we will get right back to you!