<< Umbrella Explained

    How does it work?

  • The client appoints the umbrella company to carry out services at a temporary work location, this is known as the "Service contract".
  • The umbrella company assigns you, ‘the employee’ to carry out the services, the "Employment Contract".
  • You carry out the services at the temporary work location.
  • The client approves your timesheet and pays the umbrella company.
  • The umbrella company arranges direct payment to you, deducting PAYE tax and national insurance contributions including any legitimate business expense claims.

    Benefits of working under an Umbrella Company?

  • As a temporary employee you will receive the protection, statutory rights and other benefits associated with employment. These benefits include statutory sick pay (SSP), maternity pay (SMP), paternity pay (PP) and a company pension if you decide to opt in to the scheme.
  • The administration involved in your temporary employment pertaining to your statutory documents, contract PAYE tax and national insurance and worker’s pension is carried out by the umbrella company.