Answering your FAQs: Candidates

First time working with an umbrella? In this blog, we share the answers to three common queries so you can start your umbrella journey with confidence.

How does an umbrella company work?

1. The contractor (you!) works for the end client under their supervision, direction and control.

2. The end client (who you’re working on a project for) pays the agency for the worker’s services.

3. The agency retains a margin and pays the rest to the worker’s umbrella company.

4. The umbrella (us!) retains their margin and covers all the employer costs as well as reimburse any relevant expenses. The remaining money will be paid to the contractor under PAYE.

How do I spot a non-compliant umbrella?

• No accreditation by FCSA, APSCo or Professional Passport

• They offer you take-home pay that’s too high to be compliant with HMRC

• They don’t want to provide you with full details of your contract of employment

• Payments of low salary coupled with annuities, loans, or trust payments from an offshore scheme

What are my employment rights if I use an umbrella company?

You are an employee of the umbrella company and so have the same rights as any other employed person.

This includes:

• Being paid minimum wage

• The right to paid holiday

• Being auto-enrolled into a pension

• Statutory benefits such as sick pay and maternity pay

Working through an umbrella company can provide a continuous payroll link from one assignment to the next, preventing problems like ‘emergency’ tax when you start a new assignment through a new agency.

Got any queries or want to get started with us? Get in touch with our helpful team today for a free pay illustration.

Email us via [email protected] or call us on 02039676846.