Our PAYE Umbrella product provides a service to contractors that is a tax-effective, compliant and safe way for you to receive up to 85% net income from your assignments.
What is a PAYE Umbrella?
PAYE Umbrella companies provide a way for contractors to offset genuine expenses incurred during their assignment against their tax. This is a fully compliant way, within Inland Revenue guidelines, for contractors to maximise their net pay.
Who is suitable to use an Umbrella Company?
- Contractors starting up who expect to work through an agency for the foreseeable future.
- Contractors who are ‘caught’ by IR35 (see FAQs to understand IR35).
- Contractors who do not want the additional administration and financial worry involved with running their own limited company.
- Contractors wishing to maximize their net pay by offsetting their expenses against their tax.
- New contractors who think they may struggle with the responsibilities of running their own company.
- Short-term contractors who want to avoid the costly process of forming a company and then arranging for it to be dissolved.
What are the benefits of using an Umbrella Company?
- We will arrange your contract with the agency you choose to work with.
- There is no cost to join or leave the service. You can use our service for all your assignments.
- You can remain registered with us at no cost when you are not working, so your employment status will remain intact.
- Whether you have one or many assignments in a year, we will make sure that you receive all the income, net of the appropriate Tax and National Insurance and our fee. We will issue you with a P45 at the end of your assignment if appropriate and a P60 at the end of the tax year.
- You have the option of retaining a percentage of your income to be taken as holiday pay when you need it.
- Fax, post or e-mail your time sheets each week or month if applicable, and we will do the rest.
- Employers Liability Insurance of £10M, Public Liability Insurance of £5M and Professional Indemnity of £2M free.
- An expense dispensation agreed with the Inland Revenue which considerably reduces your tax burden.