 |
Parasol umbrella company
Over 47,000 satisfied contractors. Excellent service, online portal. Call 0800 458 0818. |
How contractor umbrella companies operate
Posted Apr 6, 2011
Before embarking upon a career as an IT contractor, one of the first things you need to do is decide whether to contract via your own limited liability company, or via an umbrella company.
There are positive and negative reasons for selecting either structure to work under. You can find out more in our start-up guide: limited company or umbrella.
If you have chosen to join an umbrella company, most PAYE schemes operate in the same way. In this article, we outline the typical steps you will follow as an umbrella company employee:
How an umbrella company operates
1. You sign up to become an employee of an umbrella company scheme (read our leading guide to choosing an umbrella company).
2. Once you have found a contract role, the umbrella company signs a contract with the contractor recruitment agency, or end user.
3. You will typically sign an employment contract with the umbrella company, and will need to provide them with your P45/P46 and other essential information.
4. You submit your timesheets (often online these days) and any expenses claims you may have (typically on a weekly or monthly basis).
5. The umbrella company will invoice your client / agency for the hours or days you have worked.
6. The recruitment agency or client settle the invoice with your umbrella company.
7. The umbrella will pay you your salary, typically weekly or monthly, net of PAYE (income tax) and NICs (national insurance contributions). They will also deduct their fee and any other sums you have pre-agreed. They will also reimburse any allowable expenses.
8. You will receive a payslip detailing your salary, expenses and all deductions.
Further information
We have dozens of guides to help you find out more about working via an umbrella company, how to choose a scheme, and what to look out for:
Contractor Services
- Professional Indemnity Insurance - Essential cover from Hiscox
- The fair umbrella company - take home more pay with paraplus
- InTouch Contractor Accounting - specialist online service & great advice
- Parasol - the UK's favourite umbrella company
- Contract Experts - ClearSky Accounting on 08000 325 326
- Helix Management Ltd - Up to 90% retention. Same day payments.
- Umbrella Company - 12,000 contractors can't be wrong!
- Together we're stronger! - Join PCG, representing contractors
- Cloud 9 Group - Umbrella Solutions only £27.50 per week
- Qdos - IR35 experts - Providers of low cost contractor insurance
- K & B Accountancy Group - Fixed fee contractor accounting only £75pm
- Free IR35 & Tax Review - Call ICS on 0800 195 3750
- Contractor Mortgages - the best deals, based on your contract rate alone!
Related Articles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
