As an umbrella company, we act as an employer to agency contractors who work on a fixed term contract assignment, usually through a recruitment employment agency.
Knowledge Base
We Are Usually Asked About
How does this work?
Recruitment agencies issue contracts to a limited company as the agency liability would be reduced. It issues invoices to the recruitment agency (or client) and, when payment of the invoice is made, will typically pay the contractor through PAYE with the added benefit of offsetting some of the income through claiming expenses such as travel, meals, and accommodation.
What about Tax Law?
We have years of experience in taxation and that come to bear in our handling of your tax, ensuring 100% compliance.
What is IR35?
IR35 is legislation brought in by the Government in April 2000, to counter what HMRC class as a disguised employment.
What is the implication of IR35
If your contract has the same level of risk, responsibility, liability, and control as a permanent employee, then you would be classed as inside or caught by the IR35 legislation. This means you will have to pay full tax and full National Insurance (instead of the usual salary and dividends from the profits of your company) and reduced expenses i.e. you’ll earn less money This is because HM Revenue and Customs believes that as you aren’t taking the financial risks or have the same level of control as a director of your own limited company, you aren’t entitled to the same corporate tax structure.
How much will I take home?
The amount that you take home weekly or monthly depends on a number of few key factors like your hourly or daily rate, how often you work and most importantly, allowable expenses you can claim. We will work you through these factors to ensure you take home the maximum possible within the law.
How long does it take to get started?
Our set up is fast, and you can start working with us within hours, simply provide the relevant documentation and we will take care of the rest.
Do I pay any fee when I am not working?
No. You are only charged when you are working.
What will happen when I switch agency?
This is not a problem. Simply provides us with the new contract details and the details of your new agency. Once received we can get everything setup with the new agency, it is that simple.
Didn’t Find the Answer?
If you still have more questions or concerns, please free to contact us by completing the form below, we will get back to you within 24 working hours.