An umbrella company employs temporary workers, supplies them for short term contracts and processes their payroll. It is comparatively cheaper and incurs less administration than setting up your own limited company, particularly if you are not a career temp. With an umbrella company:

• You will not be a director nor have any responsibilities for running the company
• The umbrella company will address its accountancy and taxation matters

Since the introduction of the Managed Service Company Legislation in the 2007 budget, the umbrella company should make payments to you that are net of PAYE and National Insurance Contribution as all income is treated as salary.

You are an FPS Umbrella company employee.

The salary paid directly into your bank account will be net of PAYE and National Insurance Contributions. Each individual has their own tax code and this together with their unique situation of variable hours worked means that payments could vary. You can use our online calculator to work out how much better off you could be with FPS or chat with one of our Registration Team to clarify your own circumstances.

The amount of money that you receive each pay run will depend on the hourly rate, hours worked, expenses submitted and your tax code. Changes in any of these variables will mean an alteration in the amount paid to you.

You will need to register initially on this website. You will set your own password as part of the initial registration which you will need to use to access the members lounge through the Members Lounge Login on the home page of this site.

Payment is processed from cleared funds into the Umbrella Company and is generally available to you on the third working day.

To check your payment status, please log into the member's lounge and access "View payment history."

Your pay slip is posted in your Members Lounge Area.

You don’t, but it is relevant when calculating your Gross Salary. Employers NI is a cost to your employer (the Umbrella Company) and has to be deducted by law and is calculated on your gross salary. Your Gross salary is calculated on the funds received by your employer available after all deductions and expenses (including employers National Insurance).

Before claiming expenses we need you to complete an Expenses Status Questionnaire. This is completed online in the Members Lounge for each contract you take up. The Expenses Status Questionnaire identifies if you can claim home to work travel and subsistence. Details of expenses are submitted by you when submitting your timesheet or on an ad-hoc basis. For those expenses that require a receipt, you will be issued with an Expense Reference Number by the website when you submit the expense details online. You will need to record this number on the envelope that encloses your receipts. Please send this envelope to:

The Expenses Team
Administration Centre
Ramsey
IM8 1GB

You can track the progress of your expenses claims on your Members Lounge area. If the status of your expenses claim does not change please call our Membership Services Team on 08707 669 229 Monday to Thursday 8am to 6pm and Friday 8am to 5.30pm.

You may claim the HMRC rate of £0.40 pence per mile for your first 10,000 miles, there after the rate reduces to £0.25 pence per mile within the same tax year.

Please contact our Membership Services Team on 08707 669 229 with the following information:
• Your Recruitment agency / Clients details
• Rate of pay
• Start date of your contract

The new tax code for this tax year is 647L. This equates to:

• A tax free allowance of £125.00 per week
• Tax free allowance of £540.00 per month
• Basic Rate at 20% on earnings up to £37400
• Higher Rate at 40% on earnings above £37400
• Additional Rate at 50% on earnings above £150000

No – The Lower Earnings Limit threshold has increased from £95 per week to £97 per week however all other thresholds have not increased, and there are no changes to employee’s/employers NIC’s rates which remain at:

• 11% Employees
• 12.8% Employers
• Employees Weekly NI allowance £110
• Employees Monthly NI allowance £476
• 1% Employee NIC on earnings above UEL

The company that employs you is legally required to send you a P60 by the 31st May. We will have printed and posted your P60 to you by that time.

You must keep the form safe; we will not be able to send you a second. We can send a Statement of Earnings Letter that shows the necessary information.

The P60 shows your Gross Salary, PAYE, National Insurance Contributions, Student Loan deductions.

No, FPS takes care of all the company end of year returns we do not take care of personal tax returns. FPS does however provide additional tax services and a preferential rate will be available to FPS members for assistance with personal tax returns, please contact 08707 669 249 for more information.

Self Assessment is a way of working out and paying tax. It is a way in which to tax items, which cannot be accommodated in the PAYE scheme; PAYE carries on as before. The most common reasons why employees are required to complete Self Assessment Forms are that they have received income from less common sources. (i.e. land & property, bank interest not taxed at source, foreign income etc.)

No
• Unless you have received £10,000 or more from savings or investments before tax (this does include dividends)
• If you were self employed at any point through the year
• If you earned over £10000 all income
• You were a Director at any time during the tax year
• You have been sent one by HMRC
• Claiming £2500 worth of expenses/subscriptions against tax

If HMRC send you a Self Assessment form you must complete it and send it back!

This is a personal choice. If you would like assistance to complete the tax return then we can put you in touch with a tax return specialist with whom we have negotiated special rates for our members.

You can complete your self assessment form online through HMRC, the address is: http://www.hmrc.gov.uk

It depends on your personal situation and if you were being paid on the on the correct Tax Code for your individual circumstances. If you have received other sources of income outside of your employment with XYZ Ltd or if you have claimed expenses that the Revenue & Customs do not accept were wholly, exclusively and necessarily incurred in the performance of your duties, they may raise a further tax charge.

You would only receive a tax rebate if you have not worked for the full year or if you have been paying tax on the wrong tax code. FPS can put you in touch with a tax rebate specialist who offers FPS Members preferential rates.

A P11D is a form your employer uses to tell the revenue of any expenses and benefits in kind you have given through the Tax Year.

You will only receive one of these if you are an employee earning salary and expenses at a rate more than £8,500 per year. The company is required to prepare these forms and you will receive one by the 6th July, a copy is required to be sent to HMRC directly from yourself (employee) as well as the employer (company), this is for you to make a claim (section 336) that the expenses were wholly, exclusively and necessary incurred in the performance of my duties.

NB. If the only expenses that the contractor has claimed was for Business Mileage a P11D will not be provided. The reason for this is that HMRC do not require one if the statutory approved mileage rates (AMAP) are used - these are the only rates that the Umbrella company allow.

If you receive a P11D when completing a Self Assessment the information on the P11D must be disclosed. If you do not receive a Self Assessment these expenses MUST be declared to the Revenue in the form of a letter.

You could be liable to penalties and interest.