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Wondering how and what you’ll get paid as a contractor working through an umbrella company?

Here’s an overview of everything you need to know.

Umbrella companies employ contractors on behalf on an employment agency. You will get paid by your umbrella company as you count as one of their full-time employees (also giving you the perks of an employment status e.g. pension). 

The umbrella company will then pay you for your hours and deduct any Income Tax and National Insurance contributions.

How do you get paid?

When you send your timesheet to the recruitment agency, it charges the client.

The recruitment agency then pays the umbrella company the agreed rate. This is the assignment rate multiplied by the time you have worked. The umbrella company is then responsible for paying you as your employer.

Your umbrella company will deduct the following:

  • Administration costs
  • Employer National Insurance contributions
  • Employer workplace pension contributions 
  • Holiday pay 
  • Other amounts to cover specific costs

What will you get paid? 

Your gross pay (pay before deductions) that you get from the umbrella company should be stated in your employment contract. 

The remaining pay after your deductions (listed above) is your net pay (take-home pay).

Your umbrella company will give you a document stating what you’ll be paid, payslips every month and a listed reconciliation statement. 

Got any queries? Call our friendly team on 02039676846 or email us via [email protected].

Mint Umbrella

We employ contractors directly by providing the services of a contractor to a recruitment agency or end client using an overarching employment contract with you the contractor.

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