Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

    • tgon
    • By tgon 14th Feb 18, 12:52 PM
    • 569Posts
    • 283Thanks
    Salary query
    • #1
    • 14th Feb 18, 12:52 PM
    Salary query 14th Feb 18 at 12:52 PM
    I've seen a job advertised as 10ph (PAYE) or 12ph (Umbrella)

    I know PAYE but what does Umbrella mean, in comparison?
Page 1
    • WestonDave
    • By WestonDave 14th Feb 18, 12:56 PM
    • 5,036 Posts
    • 8,496 Thanks
    • #2
    • 14th Feb 18, 12:56 PM
    • #2
    • 14th Feb 18, 12:56 PM
    Means you wouldn't be employed by that company as you would for PAYE but via a separate umbrella company - it can be a form of self employment. The reason you'd get paid more is that the organisation offering the work doesn't have to pay things like sick pay, pensions, employers NI etc.
    Adventure before Dementia!
    • PasturesNew
    • By PasturesNew 14th Feb 18, 12:58 PM
    • 62,156 Posts
    • 363,873 Thanks
    • #3
    • 14th Feb 18, 12:58 PM
    • #3
    • 14th Feb 18, 12:58 PM
    Umbrella companies are used by self-employed people to provide them with a "fake employer" situation. In many contracting jobs you have to invoice from a Ltd company or as an umbrella.

    In short - the umbrella company invoices the client. They then do all the salary/holiday etc calculations and provide you (the employee) with a payslip and transfer your "wages" into your bank account.

    If you're currently employed and looking for a job, opt for the PAYE.

    If you're currently self-employed and already use an umbrella, opt for that route if you wish for simplicity.

    Financially, you're better off as the PAYE deal as the umbrella deal comes with a lot of costs/overheads attached ...which'd bring you in under the 10, but for an "umbrella already" person it might suit their needs right now so be more convenient for them to slide into their portfolio of work they're undertaking.
    • ReadingTim
    • By ReadingTim 14th Feb 18, 1:23 PM
    • 2,539 Posts
    • 3,621 Thanks
    • #4
    • 14th Feb 18, 1:23 PM
    • #4
    • 14th Feb 18, 1:23 PM
    It means an umbrella company, as per wikipedia

    I think it's fair to say that if you don't know what it means or what one does, you should steer clear of it, as this article illustrates...
    • getmore4less
    • By getmore4less 14th Feb 18, 5:35 PM
    • 31,862 Posts
    • 19,096 Thanks
    • #5
    • 14th Feb 18, 5:35 PM
    • #5
    • 14th Feb 18, 5:35 PM
    I would check carefully they really mean 10ph and holiday pay on top.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

971Posts Today

6,400Users online

Martin's Twitter