Q1. Why do I need an umbrella company?
Q2. How long have you been been operating for?
Q3. What are your charges?
Q4. Are there any hidden costs, such a set-up or closed down fees?
Q5. What do I need to do to register?
Q6. Do you pay dividends?
Q7. Do I need to send you my P45?
Q8. I don't have a current P45. What should I do?
Q9. Do you issue me with a P45?
Q10. Do you issue me with a P60?
Q11. Who do I need to send my timesheet to?
Q12. When do I send you my timesheet?
Q13. How do I know you've received my timesheet?
Q14. What tax relief can I claim?
Q15. Do I receive the full amount of my tax relief claim back?
Q16. How often will I be paid?
Q17. How do I know that a payment has been made to me?
Q18. Where is my payment?
Q19. Can I get same day transfers?
Q20. What do my "deductions" include?
Q21. Why do I pay Employees and Employers National Insurance Contributions?
Q22. Why am I on an emergency tax code?
Q23. I have finished my contract. Do I need to inform you?
Q24. Do I need to tell you if I work else where or claim benefits between contracts?
Q25. Am I self-employed?
Q26. Can I claim holiday pay?
Q27. Can you help me to get a Visa/Work permit?
Q28. Am I working inside or outside IR35?
Q29. Can you provide Professional Indemnity Insurance cover?
Q30. Can you provide me with references for mortgages, accommodation, etc.?
Q31. Can you help me if I need to set up my own Limited company?
Q32. Do I need to complete a Self-Assessment?
Q33. Who do I contact I have any further questions?
A1. Why do I need an umbrella company?
Many agencies will give you the option of using the services of an umbrella company. One reason for this may be because they do not have their own PAYE payroll system, so they will outsource their payroll needs to companies like us. Another reason is that you have the potential to make more money using this payment option. Using an umbrella company can make you more tax efficient, and therefore increase your take-home pay.
A2. How long have you been operating for?
We have been providing services to contractors since 1996.
A3. What are your charges?
Our contractors tell us they like transparency and certainty. In response, our margin is fixed at 5%, with a minimum of £12 or maximum £35 for each week worked. There are no set-up fees, no close down fees or minimum tie-ins. We are here as a solution for you to use as often as you require. If you do not work for a week, there is no charge.
A4. Are there any hidden costs, such a set-up or closed down fees?
No. There are no set-up fees, no close down fees or minimum tie-ins. We are here as a solution for you to use as often as you require. If you do not work for a week, there is no charge.
A5. What do I need to do to register?
You will need to speak to one of our consultants, who will send you out our registration pack. From that we will need back the registration form and employment contract before you are fully registered. If you have a current P45, it is best to send it in to us at this point also.
A6. Do you pay dividends?
No. Dividends are not payable under the umbrella solution. Should you be working outside IR35, please contact us for information about other solutions.
A7. Do I need to send you my P45?
We will require your most recent P45 (parts 2 & 3 only. You should keep part 1a for your own records). Until we receive your P45, you will be taxed on a "WEEK 1" tax code. If you have been receiving benefits, you should request a P45 from the DSS.
A8. I don�t have a current P45. What should I do?
If you do not have a P45, please ask us for a P46, which we will be able to send to you. The Inland Revenue will then advise us of your correct code.
A9. Do you issue me with a P45?
Yes. As we are your employer, we will issue you a P45 when requested by you on leaving our employment.
A10. Do you issue me with a P60?
Yes. If you are our employee at the end of the tax year, you will receive a P60.
A11. Who do I need to send my timesheet to?
You need to send your timesheet to your agency and to us.
A12. When do I send you my timesheet?
As each agency has different payment conditions, YOU MUST CHECK with your agency what their requirements are. We will require your timesheet 24 hours before your agency's invoice deadline (although we will need extra time if your agency only accepts invoices via post). Please note, although your agency requires an authorised time sheet, we do not. Therefore, sending your copy time sheet to us as soon as possible may speed up the invoicing / payment process. Please see your Registration Pack for further details of deadlines.
A13. How do I know you've received my timesheet?
The best way to submit your timesheet is using our online system which will guarantee we receive your timesheet. If you fax or email your timesheets, we will send an email confirmation that we have received them. For this reason it is important that you provide us with an e-mail address that is reliable and that you check regularly. If you have not received this e-mail 24 hours after submitting your timesheet please contact us to ensure that we have received it. (Note - faxes and emails are subject to error and we strongly recommend using our foolproof online system).
A14. What tax relief can I claim?
All expenses must be deemed reasonable and only claims that are wholly, exclusively and necessarily incurred in the course of your employment will be allowable. Please speak to one of our consultants to discuss the range that we have.
A15. Do I receive the full amount of my tax relief claim back?
No. You will not receive the full amount of your claim back, as what you are claiming is "tax relief", and not allowable expenses. This means that you will get back an amount equivalent to the tax that you would have paid on the sum that you claim. For example, if you earn £500, and your claim is £100, you will only pay tax on £400. Therefore your tax decreases and your take-home pay increases. Your expenses are not paid in addition to your income.
The only time that you will get the full amount of an expense claim back is if you pre-arrange rechargeable expenses with your agency. If you are making such claims you should clearly state that your claim is for rechargeable expenses and not tax relief.
A16. How often will I be paid?
We make payments daily, so we pay you as often as we receive funds from your agency. We pay via the BACS transfer system, which takes three working days, e.g., If we receive funds on a Monday, you would receive them on a Wednesday.
A17. How do I know that a payment has been made to me?
Once we have processed your payment, you will receive a text message to confirm that a payment has been made (for this reason it is important that you ensure we have your correct mobile phone number).
A18. Where is my payment?
Have you sent your timesheet to both us and your agency? Did you send us your timesheet at least 24 hours before your agency's invoice deadline? Have you considered your agency's payment terms? (e.g., some agencies pay in arrears (which can delay your first payment), or do not have a set payment day each week). This can cause a variation in your payment times. In addition, also consider that some agencies pay weekly, others monthly, so you should check with your agency the terms of your payments.
If you have answered "no" to any of the above, this may have caused a delay in your payment. If you are still unsure, please contact us, and we will investigate the payment for you.
A19. Can I get same day transfers?
Same day transfers (CHAPS payments), are available, but the bank will charge for this service. The cost is £25 per transfer.
A20. What do my "deductions" include?
The Deductions from your Gross pay include Income tax, Employers N.I, Employees N.I, and our fee.
A21. Why do I pay Employees and Employers National Insurance Contributions?
It is a legal requirement that Employers National Insurance is paid. As a contractor your rate of pay should allow for this deduction when being paid through an umbrella company. We will then make the necessary calculations and pay this over to the Inland Revenue on your behalf.
A22. Why am I on an emergency tax code?
Have you sent us a current P45? If not, then you will automatically be taxed on a Week 1 code (also known as an "emergency code"). You will be paying tax at the same rates as above (question 23), but on a weekly basis rather than cumulatively. Similarly, your tax free pay is given weekly rather than cumulatively. In this situation you should request a P46 which we can send to you.
Alternatively, it may also be the code that has been advised to us by the Inland Revenue, or may be the code stated on your P45 (which we therefore have to apply).
A23. I have finished my contract. Do I need to inform you?
You will need to inform us when your contract has finished. If you intend to look for a new contract then we can keep your account open. It is beneficial for you to retain our services for your new contract, but we can issue you a P45 if necessary.
A24. Do I need to tell you if I work elsewhere or claim benefits between contracts?
Yes. This is so we can ensure that you are being taxed correctly.
A25. Am I self-employed?
No. You are deemed to be an employee of Umbrella4Contractors.co.uk.
A26. Can I claim holiday pay?
The rate agreed with your agency is inclusive of holiday pay. Once we receive payment from your agency we feel that it is unfair for us to hold back a portion of your salary as holiday pay. This way you can earn the interest that the money would gain, rather than us. For this reason we pay out the full amount to you as we receive it.
A27. Can you help me to get a Visa/Work permit?
No. This is not a service that we provide.
A28. Am I working inside or outside IR35?
All contractors that use our umbrella service are deemed to be working within the IR35 Regulations.
A29. Can you provide Professional Indemnity Insurance cover?
Yes. This insurance cover is provided free of charge, subject to exclusions.
A30. Can you provide me with references for mortgages, accommodation, etc.?
Yes. We will be happy to provide references on request. There are no additional charges for this service. Alternatively we can introduce you to our in-house mortgage advisors.
A31. Can you help me if I need to set up my own Limited company?
Yes. We also offer accountancy services for Personal Service Companies - one-person limited companies. Please contact us directly for further details.
A32. Do I need to complete a Self-Assessment?
There are Inland Revenue guidelines relating to this matter. Please consult the following webpage for more details: www.ir.gov.uk/sa/guidelines.htm Where a return is required we are happy to provide this service.
A33. Who do I contact I have any further questions?
Please feel free to contact us. We will be happy to help in any way we can.