FOR CONTRACTOR
PAYE UMBRELLA
UMBRELLA SOLUTIONS
Getting paid as a Contractor
The simplest way for a contractor to get paid is to work for an umbrella firm. An umbrella company’s registration process is simple and quick, and once you register, the business hires you on the spot. You won’t need to open your own firm or perform any other administrative duties besides turning in timesheets if you use this payroll solution. You will be responsible for paying all of your taxes, including income tax and national insurance, through your umbrella payroll provider. IR35 laws are also not applicable under this choice, therefore you won’t need to worry about them.
How Does an Umbrella Company Work?
STEP 1
The umbrella firm (as your "employer") enters into a contract with your recruitment agency after you have accepted a contract position.
STEP 2
A contract of employment with the umbrella will also be signed.
STEP 3
You fill out a timesheet after finishing a pre-agreed-upon time period, give it to your manager to sign, and then submit it to both your recruitment agency and the umbrella firm.
STEP 4
The recruitment agency will be charged by the umbrella firm, who will then charge the final customer.
STEP 5
Your umbrella will handle your payroll and send you a salary after deductions for employment taxes, the pre-agreed umbrella fee/margin, personal taxes, and pension contributions (if applicable), once the umbrella firm gets payment from the agency. Another benefit of employing an umbrella is that it may be created up the same day and offers some legal benefits including sick pay, holiday pay, and employment protection. This provides contractors with a quick and effective method of payment along with some job security. However, utilising an umbrella completely eliminates the risk posed by IR35, which may be the most important benefit of doing business through one and the reason for their increased popularity.
OTHER SOLUTIONS
Know your paymnt options
There are two primary pay systems for contractors: umbrella firms and limited companies. Both have advantages and disadvantages, but depending on the specifics of a contractor’s situation, one will typically be more advantageous. The length and cost of a contractor’s typical assignments, as well as changing legislation, are just a few factors that must be taken into account while deciding between payroll structures.
Discover your Options
Limited Company
Selecting a tour company or trekking organisation is among the most crucial steps. We’ll support you.
Limited Company
Selecting a tour company or trekking organisation is among the most crucial steps. We’ll support you.