If you’ve been receiving a deemed salary since the rules changed for working in the Public Sector, you may have noticed a drop in the amount you’re taking home. When you combine that with the ongoing costs and responsibilities of being a director of your own company, it simply doesn’t pay.
Here’s 5 REASONS why you should consider using an Employment Umbrella Company as an alternative…
You pocket the difference
As an example, if you work a 37 hour week with a rate of pay of £25 per hour, your take-home pay would be £626.99. Working through an Employment Umbrella increases this to £629.61. It might not seem like a big difference, but that’s without calculating all the benefits of an Employment Umbrella.
You work a little less
There’s a lot more work involved in maintaining a limited company compared to working through an Employment Umbrella. With your own limited company, you’re ultimately responsible for submitting annual company accounts, filing tax returns and maintaining accurate financial records, as well as complying with the 2006 Companies Act. Going down the Umbrella route means you won’t have any of that on your mind, and this is where that couple of extra pounds starts to become a whole lot more appealing.
Take a Break
Working through an Employment Umbrella also unlocks other benefits that you might not have had in a while, statutory payments such as sick pay and maternity/paternity pay become an entitlement, and you’ll be entitled holiday pay, as any other employee would. The amount you’re due is calculated and advanced with every payment you receive, so you can set it aside, if you choose, for when you take a break.
Make Your Move
If you’ve ever looked for a mortgage or other financial products, you’ll know that it can be a challenge when you’re a self-employed person. Working through an Employment Umbrella means you’ll still have the flexibility of working from contract to contract, but you’ll retain the continuity of employment, often giving you access to more product options with somewhat more attractive rates.
With our Employment Umbrella, you’ll also get relevant insurance cover without paying those additional premiums you’ll be used to with your own limited company, our solutions include:
- Personal Accident Insurance
- Professional Indemnity Insurance
- Public/Product Liability Insurance
- Employers’ Liability Insurance
What is an Employment Umbrella Company?
An Employment Umbrella Company allows you to carry out a number of temporary assignments without the need to manage your own payroll or accounts. It also gives you some of the benefits that are associated with employment.
Here’s how it works …
- You work with your recruitment agency to agree a contract with an end client.
- You register with our Employment Umbrella, becoming an ‘employee.’
- You carry out work for your end client, logging your hours & expenses (if allowable) with us.
- We invoice your agency with details of the work or services you’ve carried out.
- Your agency then receives the funds from your end client and forwards them to us.
- We make deductions for Income Tax, Employee’s NI and Employer’s NI, and pay them to HMRC.
- We deduct our margin to cover the administration of employment and any other contributions, such as pension/holiday pay.
- You get paid.
Here’s what you won’t need to do as an Umbrella employee …
- Personal tax returns
- Submit company accounts
- Find business insurance
- Maintain company financial records
- Pay Corporation Tax
- Register for VAT
So, are you ready to join our Employment Umbrella Company?
Want to know more? Get in touch here