Most Common Questions Asked

FAQ's

Here are our most commonly asked questions in relation to our umbrella solutions. 

If you have any questions which this list is unable to help with, please proceed to explore the rest of the FAQ categories on offer. We are confident that are FAQ's will be able to assist with the majority of questions you have. 

Why do I pay Employers NI with umbrella?

You don’t.

In permanent employment it is the company that is liable for the Employer’s National Insurance contribution (NIC). Through an Umbrella Company, it is no different and the Employers NIC still needs to be paid on your assignment income.  The rate you are offered to work through an Umbrella Company should be adjusted to allow for the fact.

This therefore needs to be taken into consideration when negotiating your pay rate with the agency or end client. Please bear in mind that if you were to accept a contract paying the same rate as when you were a permanent member of staff, you would actually take home less money because of the Employer’s NIC.

Employer’s NIC is calculated at 13.8% on earnings above £162 per week and is uncapped so, not taking into account the margin that the Umbrella Company retains, this is the minimum uplift you would need on a permanent rate to achieve a similar net pay. As an example of this; you would need to negotiate £28.45 as the minimum hourly contractor rate to take home a similar net pay as a permanent member of staff earning £25.00 per hour.

You may be offered two different rates, one to be paid directly through the agency’s payroll and another, higher rate, to have your pay processed through an Umbrella Company. The lower rate will apply if you opt to be paid directly by the agency because they themselves will be liable for the Employer’s NIC. The higher rate is offered if you are being paid through an Umbrella Company because they are liable to pay the contribution. Provided the difference between the two rates is greater than 13.8%, you will be better off through an Umbrella Company.

Remember the assignment income is not your salary rate therefore you are not paying Employers NI, and we show you all deductions made from the assignment rate to Net salary.

What is Apprenticeship Levy?

The levy requires all employers operating in the UK, which meets certain criteria to make payment to the Government to fund apprenticeships.  The apprenticeship levy is calculated at 0.5% of salary payments made.

When do I get paid?

We will pay you as regularly as possible. We process payroll every day, so will arrange payment as soon as we are able to. Note that we require receipt of appropriate verification as determined by your employment contract in order to make your first payment.

How will I know when I am paid?

We will send you an SMS text message instantly to inform you that payment has been made. Additionally you can check in your online client portal for details regarding any payments processed. 

Will I get paid the same amount each week?

Not necessarily. The amount of money that you receive each time will depend on the agreed limited company rate, hours worked, business mileage claims submitted and your tax code and amounts received from the agency. Changes in any of these variables will mean an alteration in your take-home pay.

Have you received my recent expenses claim?

You can track the progress of your expense claims under Expense History in your client portal.  If the status of your expense claim does not change please contact our client services team on: 0800 612 9345, Monday to Thursday 9 am to 6 pm and Friday 9 am to 5 pm.

Please note, you need to leave at least 24hrs for the expenses to be applied to your payment.

How do I access the client portal?

You will set your own password as part of the initial registration process which you will need to use to access the client portal through the client log-in on the homepage of this website. Once you are in possession of your login details, access to the portal will be a quick and secure process for you. 

Do I get holiday pay with umbrella?

Yes.  Holiday pay is clearly shown on your pay slip.

Will I receive a pay slip?

Your payslip will be available to view and download from within your secure client portal.

0800 634 4848

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Umbrella Company Solutions - Take home pay calculator

Use our calculator to quickly find out your take home pay using our umbrella company solutions.