Wed 29th Mar 2017
What is an Umbrella Company?
An umbrella company employs freelancers and contractors who typically work through recruitment agencies. The recruitment agency or client then engages with the umbrella company rather than directly with the worker.
Umbrella companies have become more prevalent in the UK since the British government introduced IR35 legislation that creates tests to determine employment status and ability to make use of small company tax reliefs.
Once your contract is in place with your client, you give the details to the umbrella company who deal with all the invoicing and PAYE and NIC contributions so that you receive a regular pay check with the total take home pay – just like PAYE.
The Advantages Of Working With An Umbrella Company
• Work related expenses which you claim for are paid free of tax and National Insurance, which increases your take-home pay.
• You’re entitled to paid holiday, so you're not out of pocket when you take a break.
• As an employee of NWM you are covered by comprehensive insurance policies so you know you have the right level of protection while you're working with us.
• You’ll have access to a workplace pension scheme.
• The umbrella system has advantages for people dependent on static income levels. As a general rule if your charge rate is under £15 a hour you may be best to operate through an umbrella, or if you plan to contract for a short time.
How Much Will This Cost?
Umbrella companies will typically take a percentage cut of the value of the contract to cover their margin. To get a quote, call us on 0330 333 4240.
NWM Umbrella makes life simple as the contract covers any number of short-term assignments. You are able to enjoy the security and benefits of being employed by NWM, but at the same time keep the flexibility of moving from assignment to assignment as you choose.
To find out more about how working with the NWM Umbrella could be beneficial for you, contact us or visit http://nwm.uk.com/.