Umbrella FAQ

WHAT IS AN UMBRELLA COMPANY? 

An umbrella company employs individuals that work on assignments with different clients. The work an umbrella employee does is usually sourced by a recruitment agency, who have a business relationship with the umbrella company. The umbrella company will be responsible for invoicing the recruitment agency for completed work, calculating and paying PAYE (Pay as You Earn) and National Insurance and providing statutory benefits to its employees. 

HOW MUCH TAX DO I PAY? 

The amount of tax you pay will be dependent on factors including your tax code, your year to date earnings and your sources of income. For a summary of deductions for your personal circumstances, please email us at info@sbgrp.co.uk.

WHY AM I ON THE WRONG TAX CODE? 

Please send us your P45 to ensure that you are on the correct tax code for your employment. If you believe your tax code to be incorrect, our payroll department will advise you to contact HMRC. Unfortunately, we are not able to discuss this with HMRC on your behalf. 

 

CAN I STILL CLAIM EXPENSES? 

Following the introduction of the travel and subsistence legislation in April 2016 as part of the 2016 Finance Bill, contractors who are under the supervision, direction or control of any company in the supply chain will no longer be able to claim home-to-work travel and subsistence expenses. Legitimate business expenses can be claimed at the end of the financial year which can be done via a self-assessment or a P87 form, which we are able to assist you with. 

WHAT EXPENSES CAN I CLAIM? 

Legitimate business expenses include things such as travel and subsistence incurred whilst travelling to a temporary workplace, work specific clothing, tools, training costs, professional subscriptions and use of your own home as an office. Your expenses should be stored on the Stonebridge online portal accompanied by receipts to make your claim as quick and as easy as possible. For more information on expenses, please see our expenses policy. 

DO I GET HOLIDAY PAY? 

You will receive holiday pay which is calculated at 12.07% of your gross earnings. This can be accrued by Stonebridge for each period that you are paid, then paid out to you upon request or paid each week with your wages. 

 

WHAT INSURANCE AM I COVERED BY? 

As an employee of Stonebridge you will be covered by our Employers Liability, Public Liability and Professional Indemnity insurances. For more information on these insurances, please email info@sbgrp.co.uk

 

WHAT OTHER STATUTORY BENEFITS AM I ENTITLED TO? 

You are entitled to claim statutory sick pay, statutory maternity, paternity and adoption pay. To claim sick pay, we will need to see a doctor’s certificate, at which point we can check if you meet the qualifying criteria. In order to claim maternity pay, we will require a MAT B1 maternity certificate and a letter informing us of your due date. 

 

WHAT IS THE APPRENTICESHIP LEVY? 

From April 2017 some employers will be required to contribute to a new apprenticeship levy to help fund apprenticeship training. The levy is calculated as 0.5% of all earnings subject to Class 1 secondary (Employers) National Insurances contributions. It will be deducted from the gross amount we receive from your agency, before we process your payment. 

 

WHY IS EMPLOYERS NATIONAL INSURANCE DEDUCTED FROM MY PAY? 

Your umbrella company will invoice your agency for the work you have undertaken. At this point, the funds belongs to the umbrella company, as your employer. Employer deductions such as employers National Insurance, pension contributions and the company margin will then be deducted. The amount remaining will be your gross income and the amount which your tax and National Insurance contributions will be calculated on. The assignment rate offered to you by your agency will have been increased compared to a direct PAYE rate to accommodate these deductions. 

 

DO I GET OPTED INTO A PENSION SCHEME? 

You will be auto enrolled into Stonebridge’s pension scheme after three months of employment with us, if you meet the criteria. You will need to be between the ages of 22 and the state pensionable age and earn above the annual threshold. You will be contacted by our chosen pension provider before our auto-enrolment date, if you meet the aforementioned criteria. 

 

HOW DO I KNOW I HAVE BEEN PAID? 

We will send you a text message once we have processed your pay which will indicate when you are being paid. You will also receive a payslip via email which will detail your gross earnings and a breakdown of your deductions. This will then be uploaded onto your online portal for you to view at your convenience.