Frequently Asked Questions

You don’t.

In permanent employment it is the company that is liable for the Employer’s National Insurance contribution (NIC). Through an Umbrella Company, it is no different and the Employers NIC still needs to be paid on your assignment income. The rate you are offered to work through an Umbrella Company should be adjusted to allow for the fact.

This therefore needs to be taken into consideration when negotiating your pay rate with the agency or end client. Please bear in mind that if you were to accept a contract paying the same rate as when you were a permanent member of staff, you would actually take home less money because of the Employer’s NIC.

Employer’s NIC is calculated at 13.8% on earnings above £162 per week and is uncapped so, not taking into account the margin that the Umbrella Company retains, this is the minimum uplift you would need on a permanent rate to achieve a similar net pay. As an example of this; you would need to negotiate £28.45 as the minimum hourly contractor rate to take home a similar net pay as a permanent member of staff earning £25.00 per hour.

You may be offered two different rates, one to be paid directly through the agency’s payroll and another, higher rate, to have your pay processed through an Umbrella Company. The lower rate will apply if you opt to be paid directly by the agency because they themselves will be liable for the Employer’s NIC. The higher rate is offered if you are being paid through an Umbrella Company because they are liable to pay the contribution. Provided the difference between the two rates is greater than 13.8%, you will be better off through an Umbrella Company.

Remember the assignment income is not your salary rate therefore you are not paying Employers NI, and we show you all deductions made from the assignment rate to Net salary.

The levy requires all employers operating in the UK, which meets certain criteria to make payment to the Government to fund apprenticeships. The apprenticeship levy is calculated at 0.5% of salary payments made.

Not necessarily. The amount of money that you receive each time will depend on the agreed limited company rate, hours worked, business mileage claims submitted and your tax code and amounts received from the agency. Changes in any of these variables will mean an alteration in your take-home pay.

We will send you an SMS text message instantly to inform you that payment has been made. Additionally you can check in your online portal for real time details regarding any payments being processed.

We will pay you as regularly as possible. We process payroll every day, so will arrange payment as soon as we are able to. Note that we require receipt of appropriate verification as determined by your employment contract in order to make your first payment.

Yes. Holiday pay is clearly shown on your pay slip.

Your payslip will be available to view and download from within your secure online portal.

You are an employee of your company with an employment contract in place with them. Your company will raise invoices for the work you undertake and will execute payments to you as necessary. As an employee you benefit from all the benefits and statutory rights associated with full time employment.

Umbrella solutions help agencies to minimise their overheads, employment risk and administrative burden of the management of temporary employees. We allow agencies more time to focus on their core function which is to source and place talent in relevant roles.

This is the amount your agency or end client has agreed to pay your company for your services. This rate is usually higher than the rate an agency would be paying you if they employed you directly. It is calculated to include the costs of employing you via your company, including Employers National Insurance contributions, pension contributions and administration costs.

The Umbrella Company you are employed by will ensure that you pay all necessary tax and national insurance deductions via PAYE.

You don’t.

In permanent employment it is the company that is liable for the Employer’s Pension contribution. Through an Umbrella Company, it is no different and the Employers Pension Contribution still needs to be paid on your assignment income. The rate you are offered to work through an Umbrella Company should be adjusted to allow for the fact.

This therefore needs to be taken into consideration when negotiating your pay rate with the agency or end client. Please bear in mind that if you were to accept a contract paying the same rate as when you were a permanent member of staff, you would actually take home less money because of the Employers Pension Contributions.

Remember the assignment income is not your salary rate therefore you are not paying Employers Pension Contributions, and we show you all deductions made from the assignment rate to Net salary.

Not usually, but there are exceptions. For example, if you:

– Have received £10,000 or more gross income from savings or investments before tax (including dividends).
– Were self-employed at any point during the tax year.
– Were a Director at any point during the tax year.
– Earn over £100,000 gross income during the tax year (all income).
– Have been sent one by HMRC.
– Are claiming £2,500 worth of expenses/subscriptions against tax.
If HMRC sends you a Self Assessment form you must complete it and send it back.

It depends on your personal situation, and if you were being paid on the correct tax code for your individual circumstances. If you have received other sources of income outside of your employment with your company, or if you have claimed expenses that HMRC does not accept, then further tax charges may arise.