Umbrella Companies

What is an umbrella company?
Umbrella companies are businesses that take on agency workers and other types of temporary workers as their own employees with continuous contracts of employment.  Their sole purpose is to employ agency workers (often called ‘Contractors’).  To meet the rules to be ‘continuous’ employment, the umbrella company must usually pay you for 336 hours of work per year at the minimum wage.  If you have been employed by an umbrella company for more than a year, ask them if any of the 336 hours remain unpaid.
 
How much will I be paid if I work through an umbrella company?
If you are paid by an agency directly, then the rate it offers you (commonly known as the PAYE rate) is the amount, before your tax and NIC, that you should receive. So if you have a PAYE rate of say, £9.50 per hour and work 35 hours you will be paid £9.50 x 35 = £332.50 as gross taxable pay. You will then have your PAYE tax and employee NIC deducted from this. But £9.50 is not the true cost to the agency who is paying you. In addition, they may have to pay things like employers’ national insurance, holiday pay and contributions into a workplace pension. As such, the cost to them of taking you on may be something more like £12 an hour. But you aren’t entitled to be paid the full amount of £12 —you are only entitled to the £9.50. Hopefully you are familiar with this concept from any other assignments you have been in. So the £12.00 per hour the agency receives from the client, out of this the agency has to pay the Employers NIC, holiday pay, and other statutory costs.  What is left is the £9.50 that the agency pays you gross (before any workers tax is deducted).
If you choose to work through an umbrella company, the agency will pass the umbrella company the full costs of your assignment– i.e. the £12 an hour (from the funds the agency themselves has received from the end client). So when the agency explains to you that you can get £9.50 an hour if you are paid through them, or £12 an hour if you are paid through an umbrella company. The ‘headline’ rate of £12 an hour is intended to cover the total costs of employment and is not the amount you are going to personally earn! As such it can be very tempting to go with the £12 an hour – however, the umbrella company should show all deductions that have been made in your payslip.  If they don’t then please question this with them and, in our view, you should not be signing up to any umbrella company that does not provide a fully worked example, based on your own status.
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Umbrella Companies We Use
Please find below a list of current umbrella companies who work with Firstpoint Healthcare. Please contact them directly to decide which company is right for you. Firstpoint Healthcare recommend joining our pay-as-you-earn (PAYE) payroll. We do not recommend the use of umbrella companies. If you choose to work through an umbrella company please ensure that you make yourself fully aware of the deductions that the umbrella company will take before paying you. This may include Employers National Insurance Contributions (ENIC), their fees, employee national insurance contributions and income tax. You should ensure that you are fully aware of these deductions before engaging any umbrella company.

 

http://www.danbro.co.uk
Danbro
Contact number: 01253 600 140

Email address to send contracts to: enquiries@danbro.co.uk

Danbro - Limited Company accounting services & PAYE Umbrella Company for contractor

 

http://edenoutsource.co.uk/

EdenGroup
Contact number: 01276 538143

Email address to send contracts to:

Beverley Standing - bstanding@edenoutsource.co.uk

EDENGROUP - Umbrella, PAYE, International, Limited Company and CIS services & Company

 

http://www.racsgroup.com

RACS
Contact number: 01276 688050

Email address to send contracts to: info@racsgroup.com

https://www.orangegenie.com

Orange Genie Group
Contact number: 01296 468 483

Email address to send contracts to: info@orangegenie.com

https://www.advance.online

Advance
Contact number: 01244 564 564

Email address

for New Worker:  newbusiness@advance.online
for Your Account Management: accountmanagers@advance.online
for Payroll Invoicing: payroll@advance.online
for Expenses Right to Work: enquiries@advance.online

 

https://generate-fs.co.uk/

Generate
Contact number: 0207 231 0349


Email address to send contracts to: info@racsgroup.com

http://azebra.co.uk/

AZEBRA PAY
Contact number: 0845 838 0604

Email address to send contracts to: sales@zebragroup.co.uk