How do I switch Umbrella company?

Switching Is Simple

There are several reasons for contractors to change umbrella company. The most common is starting a new assignment through a different agency – most umbrella companies have a working relationship with many agencies, sometimes you may need to switch in order to work through a new agency.

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

Switching is simple, although it can take a week or two to make the switch.


How it works

  • Speak to your agency to confirm if they are happy to work with your chosen umbrella company, and check if there’s any notice period with your current umbrella.
  • Register with the new umbrella company and provide them with contact details for the agency (or agencies) who are finding you work.
  • Inform your umbrella company that you want to leave and request your P45 from them once you’ve received your final payment.
  • Speak to your agency to confirm that you are switching umbrella companies.
  • Your new umbrella company will need to carry out Right to Work and ID checks

When you switch to a new umbrella company, it’s possible that HMRC will change your tax code. Occasionally they 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 just need to ring HMRC and they will sort this out for you.

When you register through an umbrella company, make sure there are no hidden costs.

If you’re thinking about changing umbrella employer to Pendragon or have any other questions, simply give the team a call on 01992 267 067 or email

Want to find out more?

Request an illustration, call one of our expert advisors on:

01992 267 067