Frequently Asked Questions

An umbrella company is responsible for paying Income Tax & NIC to HMRC. They are also responsible for paying Pension Contributions, Holiday Pay, Statutory Sick Pay and Maternity/Paternity Pay.

Umbrella companies employ temporary workers (agency workers / contractors) who then provide their services on assignment to end-clients.

Your umbrella employer is responsible for calculating and paying all your salary related deductions, so being employed by an umbrella removes the hassles of being self-employed. Plus, there’s minimal admin for you, the contractor.

You can flexibly work for multiple clients or agencies. It may mean you are able to secure roles more easily than if you were using a limited company too as there’s no IR35 risk to your end-clients.

You get all the benefits of continuous employment such as Maternity/Paternity Pay and Statutory Sick Pay with zero joining or leaving fees, so you can use us for one week or months at a time.

As you will be an employee, you don’t need to worry about your IR35 status as you will be ‘inside IR35”, which means your umbrella employer will pay the full Income Tax & NIC as stipulated by HMRC.

Set up takes around 10 minutes and is entirely online. This streamlines our systems and makes it easier for our contractors, so we can spend time answering any questions.

For registration we require proof of ID, proof of address & Right to Work.

As you will be paying employed levels of Income Tax & NIC, your take home pay will likely be less than contractors operating through a limited company who are paid a combination of salary and dividends. However, with an umbrella company there are no accountancy fees and no risk of being caught by IR35 legislation which could prove personally expensive!

Some contractors feel they have less ‘control’ of their finances. As you will receive your net salary after Income Tax and NIC deductions have been made, some see this as a disadvantage, however, statutory payments will need to be made at some point and many contractors prefer to know it’s already taken care of and paid in full for them.

When using an umbrella company you are reliant on others within the supply chain. When you are looking to be paid on time there is an agency, end client and umbrella company in the mix. With some umbrella companies you may experience a delay in your payment.

Yes, you do. Even though you choose where you work, how many hours and your end-clients, you will be contractually employed and will therefore enjoy full employment rights and benefits.

Yes. At My Umbrella we ensure your Holiday Pay is only paid to you. You do not need to request it as it is paid to you for the hours that you work every time you are due to be paid your salary.

You will have access to our auto-enrolment pension scheme, using a nationally renowned pension provider. You are, of course, entitled to opt out if you wish.

No. As you will be an employee, My Umbrella pays HMRC full income Tax & NIC on your behalf. Only contractors operating as a limited company need to consider their IR35 status.

My Umbrella makes same day payments, running payroll throughout each day. You will be notified by text when a payment has been made.

Whether you are on a daily, weekly or monthly payment cycle, we will pay you on the day that we receive the funds from either your agency or end-client.

No, you would be employee of My Umbrella and therefore do not need to be concerned about preparing accounts, retaining and paying an accountant or dealing with Companies House.

Yes, but they are limited. Any expenses agreed to be paid by your end-client or agency are fine but, as you are an employee all other expenses such as the cost of commuting cannot be claimed.