How to change umbrella companies

There are a number of reasons for contractors to change umbrella company. The most common is that you’re starting a new assignment through a different agency – although the best umbrella companies have a  working relationship with many agencies, sometimes you’ll need to switch in order to work through a new recruiter. 

You may also want to switch if you’ve received poor support from your current umbrella company, to ensure you’re paid by a fully compliant, FCSA-approved organisation, or on the recommendation of a friend or colleague – many umbrella companies also offer bonuses if you’re referred by a contractor they already employ! 

Although it can take a week or two to make the switch, the process is straightforward. You’ll simply need to:

  1. 1. Speak to your agency to confirm if they’re happy to work with your chosen umbrella company, and check if there’s any notice period with your current umbrella.
  2. 2. Register with the new umbrella company, and provide them with contact details for the agency (or agencies) who are finding you work. 
  3. 3. Inform your umbrella company that you want to leave, and request your P45 from them once you’ve received your final payment. 
  4. 4. Speak to your agency again and confirm that you’re switching umbrella companies. 

That’s it – top umbrella companies will handle everything else on their side. It’s likely to take a week or two before your P45 is sent to you – just send this to the new umbrella company when it arrives.

When you switch to a new umbrella company, it’s possible that HMRC will change your tax code. This happens due to the quick change of employer – the tax office occasionally think that the new umbrella company is a second employer, and will remove or reduce your tax allowance through the new umbrella company. If this happens, you’ll need to ring HMRC. Not to worry – if you end up temporarily overpaying in tax while employed by Orange Genie, it’s all returned to you the next time we pay you, after we receive a new tax code. 

The best umbrella companies won’t put any obstacles in your way when you leave. Orange Genie do not charge an administration fee to send your P45, and there’s no notice period either* – you’re free to move whenever you like. When you register through an umbrella company, make sure there are no hidden fees and that you won’t be tied down for a certain length of time. 

If you’re a contractor and thinking about changing umbrella company to Orange Genie Umbrella or have any other questions about umbrella employment, simply give us a call on 01296 468 483 or email umbrella@orangegenie.com

To learn more about how an umbrella company works, click HERE >> 

*There’s no notice period to leave Orange Genie, however there may be a notice period on your assignment with the recruitment agency. 

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