Umbrella FAQ's

Umbrella FAQ's

1. How long does it take to join?

Joining usually takes a maximum of ........ on receipt of all your paperwork including your registration form and ID.

2. Why do you need my original ID?

Over the last few years new rules have been brought into play governing employment and immigration. We have kept up to date and fall in line with this legislation.

3. What ID do you need from me?

We will require one form of photo ID (e.g. a passport, driver's license or a National ID card) along with a bank statement or utility bill to prove your residential address. For non-UK nationals there will be further documentation required such as a work permit..............

4. What happens if I do not have a P45?

If you do not have a P45 when you join we will send you out a form P46. Please complete this form and return it to us for it to be forwarded to the Inland Revenue. Whilst the form is being actioned by the Inland Revenue, you will be placed on an emergency tax code. Once your new tax code is received this will be actioned, and in some cases you may be eligible for a tax rebate.

5. Why do you need my original ID

The law states that before anyone starts work an original ID must be seen by the employer and copies taken to be retained as proof that the person is eligible to work in the UK.

6. When will I be paid?

Usually your payment will be credited to your bank account every Friday. This payment will be for the previous week.

7. How will I know funds have been credited to my account?

You can opt in to receive a SMS text message confirming that your payment has been made.

8. What expenses can I claim for?

You can claim for travel to and from work either through work, mileage in your own vehicle or the cost of public transport. Accommodation and a daily allowance can be claimed if your work has taken you away from your permanent address. If you spend 5-10 hours away from home you are able to claim for food up to the value of 7.50 and if you spend 10 hours away you can claim up to 15.00. Receipts will be asked for if this is the case.

9. When is your expenses deadline.

Ideally we would need to receive them by Tuesday of each week. If they arrive after the deadline they will be added to the following week.

10. How much will I get back?

If you are paying standard rate tax then 1.00 of legitimate expense claimed improves your take-home pay by about 0.37p.

11. What if I claim more expenses than you can apply to my wages one week?

These expenses will be carried forward to the following week.

12. Why are expenses on both sides of my payslip?

Claimable expenses are expenses that are incurred by the contractor and are wholly and exclusively business related. The Agency/client do not pay these on behalf of the contractor, there are expenses that are claimable through the Umbrella Company. By submitting an expense, the contractor is effectively reducing their taxable earnings and thus reducing the amount of PAYE and NI paid.

The reason why claimable expenses show up as a deductible expense is because we deduct the amount of your expenses from your pay before we calculate your tax, this is the main benefit of using an Umbrella company; expenses reduce your taxable income. Your expenses show up on the other side as a claimable expense because the expense is then added back onto your pay after the tax has been taken off.