Umbrella company?

Jennhurl

I've been offered a temp contract and the agency said I should work through an umbrella company. Does this seem like a legit way to work- set hours and that but not actually employed by my employer?

And if so, is paystream an ok one?

[Deleted User]

Seen it more and more recently even in job adverts.

Pennywise

Yes, pretty standard for temping these days. Just be aware that the umbrella will charge an admin fee and probably also take the employers NIC out of the advertised rate, so best to check with them what your "take home" will be before you accept the job as sometimes it's quite a surprise how the deductions mount up.

motorguy

Pennywise wrote: »

Yes, pretty standard for temping these days. Just be aware that the umbrella will charge an admin fee and probably also take the employers NIC out of the advertised rate, so best to check with them what your "take home" will be before you accept the job as sometimes it's quite a surprise how the deductions mount up.

+1

Employers NIC will come out so thats 13.5% or something like that.

Apprenticeship levy also @ 0.5% or thereabouts.

They are also legally obliged to pay you for annual leave and they will do that by taking something like half a days pay out per week to put in to a pot for you so they can pay you an annual leave entitlement.

Check the precise amounts but its in that ballpark.

System

Jennhurl wrote: »

I've been offered a temp contract and the agency said I should work through an umbrella company. Does this seem like a legit way to work- set hours and that but not actually employed by my employer?

And if so, is paystream an ok one?

It's quite common for contractors to work like this. British Steel is one such.

DoctorStrange

Are you working in the public sector or private?

Under the old (Chapter 8) rules, you'd have to pay the Employer NIC but the new Chapter 10 rules pass this liability onto the fee payer*. Those rules only apply to the public sector just now but will come into the private sector in April.

There's so much confusion in the market just now over who is actually responsible for what so best double checking your exact situation with an accountant.


* Obviously rates will reduce when people realise this but if your public sector just now you might have a chance to reclaim the employment taxes. After all, you can't be both the employer and employee...