The things contractors ask us most, answered without hedging. If your question is not here, call us — the consultation is free.
An umbrella company employs you directly and handles the invoicing, payroll, tax and National Insurance. Your agency or end client pays the umbrella, the umbrella pays you through PAYE, and you remain an employee with the associated rights.
No. With an umbrella there is no company to set up, no accounts to file and no Companies House returns. That is the point of it.
Yes. You tell your agency where to send payment, we handle the onboarding, and there is no gap in your pay. Nothing in a typical agency contract prevents it.
Once your approved timesheet is received and funds have cleared from your agency, payroll runs. Same-day payment options are available — ask us when you sign up.
Holiday pay accrues at 12.07% of your earnings and is paid to you when you take leave. It shows on your payslip so you can see what has built up.
No. Income tax and National Insurance are deducted once, through PAYE, exactly as they would be in a permanent job. Employer's National Insurance is a separate cost funded from the assignment value, not a second deduction from you.
See our fees page for what is included. Umbrella pricing is confirmed in writing before you join, and self-assessment is a flat £105.
Since April 2016 the rules for umbrella contractors are restrictive — most travel and subsistence claims are no longer available unless you are caught by supervision, direction or control. We will tell you plainly what applies to your situation rather than letting you assume.
No. Your status is determined by the end client and the working practices of the assignment. Because you are paid through PAYE as an employee, the disguised remuneration exposure IR35 targets does not arise. Read our IR35 guide.
Employer's National Insurance at 15% and the 0.5% Apprenticeship Levy come out of the assignment value before you are paid, then income tax and employee's NI come out of your salary. Our calculator shows each line.
Usually not if all your income is taxed through PAYE and you have nothing else to declare. If you have rental income, untaxed savings or dividends, you may still need to. See our self-assessment service.
Your information is used to provide the services you have asked for and is never sold. See our privacy policy for the detail.
Call us and speak to an adviser who knows contractor payroll. Free consultation, and no pressure to sign up.