There are plenty of unethical umbrella companies on the market advertising 90% pay retention, and it is more important than ever to do your research and conduct the proper due diligence. Our blog answers the age-old question: what deductions should compliant umbrella companies make to a contractor’s pay?
An umbrella company directly employs contractors and freelancers in the UK and offers a simple and straightforward payroll service. When you register with an umbrella company, they will take care of a majority of the administration – leaving you with more time to focus on your work.
If you are new to contracting, prefer a more hands-off approach to payroll, or are inside IR35 legislation, working via an umbrella company can offer the perfect way to get paid. With so many umbrella companies to choose from how do you know which is the right one for you?
To thank the front-line staff who are working tirelessly in their efforts to ensure everyone is looked after during the coronavirus outbreak, Umbrella Company UK would like to offer all emergency services and NHS staff free umbrella payroll.
Business will continue as usual and we have extensive continuity plans in place to allow us to operate with minimal disruption to our services.
Contractors who are paid weekly, bi-weekly or every four weeks and whose final payday for the 2018/19 tax year falls on the 5th of April 2019 may be affected by the week 53 payment.
The 2019/20 tax year began on Saturday, 6th April 2019. There are some changes you should be aware of as a contractor (some of which came into effect on 1st April) as you may be affected.
Some contractors that are employed through agencies and umbrella companies are signing up to arrangements that claim to maximise their take-home pay and retain up to 90% of their income after tax and NI. But these are clearly tax avoidance schemes.