Frequency Asked Questions
We have compiled a list of some of the key questions you may want to ask about the scheme. The list is updated all the time, so do email us if your question doesn't appear below:
An Employment Services Company or Umbrella Company employees Temporary Workers who work on a series of assignments, usually securing them using the services of a Recruitment Agency
ContractorUmbrella Ltd is an award winning umbrella company that has been offering exceptional service to contractors since 2002. We are sister company to SJD Accountancy, the largest specialist accountancy firm in the UK.
It is really quite simple. You will work with ContractorUmbrella under a Contract of Employment and we will work with your client/agency under a business to business contract. We will provide you with details of each assignment and ask for you to confirm your acceptance. Once you have completed your first period of work you will need to have your time worked authorised by the client and you will also need to complete a timesheet for ContractorUmbrella using our online portal which is straight forward and easy to use. We will pay you a salary monthly for authorised time worked regardless of whether we have received funds for you from your agency/client. When we receive payment for the work you have done on assignment, payment will be made to you, a payslip will be emailed and our online systems updated. You will have an Account Manager appointed to you who will be there to answer any questions that you may.
ContractorUmbrella deals with contractors from a wide variety of industries including:
- Financial Services & Banking
- Medical & Pharmaceutical
- Oil & Petrochemical
- Aircraft & Aerospace
- Relief Teaching
Unfortunately we cannot help people working through CIS in the construction industry but, even if your industry is not listed above, please speak to one of our advisors on 01206 713680 to find out if we can help you.
If you are a UK tax resident we can usually help you for up to 183 days in any tax year before you become liable for local taxes. There are however a few exceptions to the 183 day rule so please contact one of our advisors on 01206 7613680 to find out if we can help you.
We have extensively researched what contractors expect and require from an Umbrella Company and we believe we offer a completely 'hassle-free' solution, with no catches and no 'hidden' costs:
- A portal system which enables you to submit both timesheets and expense claims online
- You will receive a salary payment each month from us regardless of whether we have received assignment payments from the Recruitment Agency
- All emails will be answered within 4 hours if sent during business hours
- If you call us, you can be assured that your phone call will be answered, by a real person, within 3 rings.
- Invoices covering your assignment are emailed to the Recruitment Agency ensuring that payments will not be delayed.
- You will be appointed a Personal Account Manager who will be happy to answer any of your questions
- ContractorUmbrella has been trading for 10 years and offers levels of experience not available within other umbrella companies
- We are sister company to the SJD Group, the largest specialist accountancy firm in the UK.
Please visit our Benefits Page for more information.
You cannot now legally work in the UK without a Contract of Cmployment in some form and this carries certain responsibilities and obligations for the employer.
ContractorUmbrella enters into a business to busines contract with the agency/end client. This contract states that we will supply them with an individual who has the necessary skills to satisfy the clients’ requirements. The agreed rate for the services performed will be paid to ContractorUmbrella over a prearranged period of time. The agency/client will choose to use a contractor rather than a permanent employee if they do not wish to assume the ‘employment rights’ that are associated with permanent employees. ContractorUmbrella has assumed those rights.
Umbrella companies retain a margin from the agreed Contract Rate; for ContractorUmbrella the margin is £95.00 per month or £27.50 if the employee is weekly paid.
Our fees cover £10 million Employers Liability, £5 million Public Liability Insurance and £2 million Professional Indemnity Insurance.
From April 2007 the only legal way to receive dividends is through your own personal Limited Company, over which you have complete financial and administrative control. ContractorUmbrella pays you through PAYE so you are safe in the knowledge that you are totally compliant. Please visit our MSC Closed page for more information.
As An employee of ContractorUmbrella Ltd, you will not fall under IR35 rules. You will be paid via PAYE only and will not receive dividends in any form. ContractorUmbrella Ltd does not offer a Composite Scheme or Managed Limited Company.
As an employee of ContractorUmbrella Ltd you are entitled to claim HMR&C approved expenses that will be processed with each payment. Bear in mind that Umbrella Companies are all subject to HMR&C regulations and the only variance in your take home pay between each company will be as a result of their retained margin. To calculate how much you can expect to take home, please use our Online Calculator.
Registration is completed online - you just need to follow this link. You will then be sent an email advising you of your username, password and details of the documentation that we will require from you to complete the registration process. You will also be contacted by your Account Manager who will be there to answer any questions that you have. Your Account Manager will contact the Recruitment Agency and then let you have details of your first assignment which you will need to accept to confirm that you are happy to work on the assignment.
If you do not have a P45 please advise your Account Manager as we will need to send you a P46 to complete, from this we can determine which tax code to use to process your payments.
You will receive a salary payment from us each month regardless of whether we have received funds from your assignment. Otherwise we will process payment through Payroll for you on the same day as we receive payment for the work completed on assignment
A payslip will be emailed to you on the same morning we process a payment. This will show the net figure being transferred to your account as well as the contributions for Income Tax and National Insurance contributions as well as any deductions. The expenses processed will also be shown on the payslip. Your homepage is updated on the same day so you can track which invoices have been paid.
When a payment is processed this is normally transferred to your account by BACS, which takes 2-3 working days to clear. You can however request a Same Day Payment transfer; you will need to advise your Account Manager if you require your salary on the same day as the payment is processed.
Unlike running your own Limited Company, with ContractorUmbrella you don't need to worry about any of these things. We take care of all VAT, PAYE and NI liabilities and make payments directly to HMR&C.
Any expenses you claim must be allowed by HMR&C. A more detailed explanation of how to determine which costs you will be permitted to claim as expenses can be found here.
Unlike other Umbrella Companies, all client money is held in trust. This means that the funds are protected, even if the company was to experience financial difficulty your money is held in a separate client account, which is out of reach from any creditors.
We will be sorry to see you go! We will just need you to give us notice of your intention to terminate your employment with us. We will collect all outstanding funds from your assignment and make a final payment to your bank account. We will then be able to issue you with a P45.
When you have been at the same client's site for 24 months, or you become aware that your contracted period will extend beyond 24 months, your workplace is no longer deemed as temporary. Once you have breached the 24-month rule and you spend 40% or more of your time at the same site, you will no longer be able to claim travel between home and that place or accommodation expenses.