An Umbrella Broker is a company that will seek to find the best umbrella company for your specific needs. Most agencies that you deal with will give you a PSL list to pick from, however, this doesn’t necessarily mean that any of them will be what you are looking for.
We, as an umbrella broker, will have a conversation with you to find out what it is you are looking for and then offer you a quote from the umbrella company that will best suit your needs.
The IR35 legislation affects all public sector contractors who have to report to someone. If you are within this category of contractors then as of April 2016, all contractors will be legally obliged to use an Umbrella company for their payroll solutions.
They’re actually one of the most common options for contractors because of how easy they make things for yourself.
While limited companies need to be set up and run by contractors, umbrella companies simply hire contractors as pay-as-you-earn (PAYE) employees. You are added to the payroll of the umbrella company and pay a fee to them. For this fee, they take care of all your administrative and financial duties – like a permanent employer.
They will provide statutory rights like insurance and paid leave. They’re also responsible for paying your taxes, so any money you receive is your take home pay. However, unlike a permanent employer, your umbrella company won’t set you to work. You can take on contracts as normal, focus on work and leave the administrative work to them.
Umbrella companies are a great option for contractors who want to keep things simple. They take the administrative burden of invoicing, payroll and tax off your plate, giving you a final sum of ‘take home pay’ every week, or after each job.
Due to changes in IR35, having a limited company isn’t possible for everyone. If you work under the direction of control (you have a manager) then legally speaking you would have to use an Umbrella company as opposed to using a LTD company.
Goddington Pierce will not charge a fee to any candidates. We already have agreements set in place with the umbrella companies that we work with. By using Goddington Pierce, it will not affect the take home quote provided.
Holiday pay is 12.07% of basic pay. You can either have this reserved (for when you have days off) or paid to you (you won’t get paid for time off).
You’ll be auto-enrolled into a pension after 13 weeks, you do have the option to opt-out. The standard pension rate is 5% for employees and 3% for employers.
Different Umbrellas will operate with different management fees. Somme Umbrellas will also have a team of in-house accountants to optimise your take-home – some are better than others when it comes to efficiency.
At Goddington Pierce, we only work with compliant Umbrella companies, meaning you won’t have any unexpected tax bills. If you are working with an Umbrella company that is providing an income that seems too good to be true, it usually is. If you’re being paid via 2 payments, your income will be declared at the lower payment level which will be reflected on your payslip. We do not work with any Umbrella companies who utilise this model.
Although being an employee of an Umbrella company, an Umbrella company is just an entity that is used to process your payroll and tax deductions. Therefore, you are not tied into any fixed-term, unlike a normal permanent employment role. You are able to leave the Umbrella company at any time you wish.
All contractors are assigned an account manager who will ensure you generate the highest take-home whilst remaining compliant. Your account manager will be in touch with you every week to advise payments and answer any queries.
This requires human input. Please leave your correct details so we can accurately calculate your take-home for you and get in touch with the results.