Put simply, an umbrella company pays your salary the way an employer usually would, ensuring that all relevant tax contributions are properly calculated and submitted to the HMRC. This means that we act between contractors and agencies to process timesheets and payments correctly, taking the hassle of administration off of your hands.

When it comes to processing and calculating your payments we have no other factors to consider than the HMRC. Our PAYE payroll is linked through the RTI (Real Time Information) system which provides and records your earnings and deductions – effectively protecting you from any comebacks. Therefore it is not up to us to decide what you should be paid, but to make sure that you receive a consistent take home salary by doing it right.

Choosing between PAYE and a Ltd company will depend upon your circumstances and preferences. Firstly, the shift towards PAYE umbrella services has increase where many larger employers and agencies insist on it for their contracts to prevent potential disruption down the line. Limited companies are beneficial due to tax paid on ‘profit’ but will involve a lot more time and consideration to keep on top of, – with more likelihood of HMRC investigations if anything looks out of place.

Contractors often prefer PAYE umbrella services as they are hassle free and ensure that proper deductions are being made – where it is important to remember that anything outside of this ‘can’ and ‘will’ be considered as tax evasion by the HMRC.

When it comes to processing and calculating your payments we have no other factors to consider than the HMRC. Our PAYE payroll is linked through the RTI (Real Time Information) system which provides and records your earnings and deductions – effectively protecting you from any comebacks. Therefore it is not up to us to decide what you should be paid, but to make sure that you receive a consistent take home salary by doing it right.

Yes you can claim expenses under a PAYE umbrella that are reasonably incurred whilst carrying out your work. These will usually be agreed by the contract provider and monitored by your agency. Often you will be required to keep records of expenses or complete expenses forms when required.

Our customer support team are on hand to let you know exactly what you can claim for to help offset some of your taxable liabilities.

Yes it definitely is worth being paid as a contractor under a PAYE umbrella, especially if you can maintain regular work. Most of the UK population conforms to PAYE tax rates as standard, and many contractors that may have been used to various accounting solutions that helped them keep more of there money, are at risk of the HMRC crackdowns on such scheme. But as a contractor you still get to enjoy the higher associated rates of pay than that of permanent staff to account for this. Plus you maintain more control over the work you do and how you should do it.

The alternative is to take a permanent job with the security of fixed earnings where you will still be paid through PAYE.