FOR UK CONTRCTORS:  THE UMBRELLA COMPANY SALARY SOLUTION

If you’re a temporary worker, you can choose between

• Agency PAYE scheme
• Your own limited company
• Umbrella Company

SELECTING THE RIGHT OPTION:

• Your own Limited Company:   Changes to the law have resulted in confusion about the status of this option, therefore we do not recommend this option.
• Agency  PAYE:  Some agencies allow you to become “PAYE” through their own payroll service.  This is the least tax beneficial option available to a contractor as you pay full tax & NIC on all your earnings.  In addition this option does not allow you to claim valid business expenses which would help to reduce your tax and NI liabilities.
• Umbrella Company:  (The best option) An umbrella company will;
  • Send invoices on your behalf
  • Collect payments from clients/agencies on your behalf
  • Calculate and tax & NIC
  • Pay your pay direct to your personal bank account
  • Make tax and NIC payments on your behalf to Inland Revenue
  • With recent changes to the law this option is the most attractive and offers the most “peace of mind”

MAXIMIZING YOUR PAY:

Timesheets:
As a contractor, you will be required to fill in timesheets detailing the work you have done for the Client, and the number of hours or days you have worked in a given time period.

Invoices:
Currently timesheets are mainly paper based and most agencies and clients require an invoice to accompany each timesheet, detailing the total amount owed for services performed, plus VAT (if you are VAT registered).
Some of the larger agencies also offer a self-billing option where they create an invoice on your behalf when they receive your authorised timesheet.

Payment:
Payment times can vary from agency to agency, although most of the larger ones tend to pay promptly.
A payment cycle of 1 to 2 weeks from creation of invoice to receiving the money in the bank is typical.
But, any delays; its YOU must chase up the agency/client

Records:
You must keep your timesheets and invoices up to date, ensuring they are sent in on time.
The benefits of working with us:
We perform all these administrative tasks on your behalf, prepare your year end tax reports, submit and agree them with the Inland Revenue.
You are able to claim tax relief on business expenses that you incur against your earnings and minimise your tax & NIC payments.

All the hassle and worries associated with contracting make working through Yourbooks is a safe option as you will be maximizing your take home pay and complying with all Inland Revenue regulations.

ABOUT UMBRELLA COMPANY’S

An umbrella company can offer the benefits of a limited company without the responsibilities.  You don’t have to worry about IR35 or the Managed Service Company or Third Party Debt Legislation.  You benefit by;

• No red tape that comes with being a company director
• No hassle of IR35 and the serious risks of infringing anti-avoidance legislation
• No fees to pay when you’re not working and you still get tax relief on your expenses

How does an umbrella company work? We sign a contract with the agency, and you have a separate employment agreement with us.  This effectively makes us your employer.  Once we have your timesheets and expenses claims, we’ll invoice your client/agency, receive the money and then pay you direct.

GETTING STARTED:

• you apply online, or phone our enquiry team
• we open your personal portal and guide you through registration
• we allocate a Client Service Manager to you
• we sign a contract with the agency
• you sign an employment contract with us
• we’ll activate the timesheet/expense entry sheets on your personal portal

PROCESS:

• You input your timesheets and expenses when it suits you
• We invoice the agency
• We receive cleared funds from the agency
• We process your pay via the YourPay payroll and you receive your money the SAME DAY, via CHAPS
• Your payslip is shown in your personal portal
• You can check your tracker, history, transactions and contact with YourPay at any time

HOW YOU GET PAID:

With Yourbooks you can choose to be paid weekly or monthly. All payments are made by same-day CHAPS.  We process your pay by the end of the next working day after allocation of your funds from your agency/client.  You choose your pay-day.  All your allocated funds received 1 working day before your payroll process date are paid to you.  The pay-day is always the same date each month, but weekends and public holidays will add a day or two.