<< 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.