Finding it difficult to decide? Are you stuck between using an agency which offers internal PAYE or working for an Umbrella company? There are a few things you’ll need to consider before you make a decision.
One of the main benefits of Umbrella over in-house PAYE is that with Umbrella you are fully covered by employment rights throughout.
This includes statutory payments, such as; sick pay, maternity/paternity pay and holiday pay (if you do not opt out). Your workers’ rights are not always protected under in-house PAYE and for this reason, many contractors choose Umbrella. We advise that if you’re considering PAYE, always ask the agency specifically whether you will be a recipient of these employment rights before making your decision.
Another advantage of Umbrella is the ability to offset (permissible) expenses. This can include; travel between workplaces, costs created from meals, accommodation and other expenditures. We must note that this is not guaranteed and tests are put in place to ascertain whether your travel and subsistence expenses can be off-set.We would test your role against ‘Supervision, Direction or Control’ and we can define your assignment and guide you on your entitlement of allowable expenses.
Working through an agency on PAYE means it may not be possible to offset expenses. It is advisable that if you travel a lot, or have regular expenses, Umbrella is the payroll service for you. ePayMe could improve your Net Pay.
However, the biggest benefit is that you can choose to work through as may agencies as you wish and have all your assignments paid through your chosen Umbrella provider. If you were to do this under PAYE you would have your income taxed at basic rate for all but one of your agencies. With Umbrella, you have one primary tax code, one administration fee and one payslip.
If you’re working in the Public Sector, and not yet registered for Umbrella given the changes in legislation becoming effective on April 6th. Don’t delay, get in touch, ePayMe will help.
CAUTION – you may have read about ‘schemes’ offering a bypass for workers operating in the Public Sector which offer zero risk and guarantees that liability is removed. We would urge you to stay well away from such options.
In the world of contractors, we all know that work can come and go and if you were to find full-time employment, at ePayMe we make sure there is absolutely no hassle in you commencing any new role. All we do is send you a P45 and wish you a fond farewell. If your circumstances change, or you decide to move back to contracting, we provide a quick re-registration service.
We encourage anyone who is making a decision between Umbrella and In-House PAYE to thoroughly research and ensure the selected solution meets your personal requirements. It goes without saying, to ensure that your selected provider is compliant with HM Revenue & Customs legislation.
We operate a ‘no-jargon’ service. This means we’ll speak to you in plain English – we won’t use language that will confuse or bamboozle you. Speak to one of our experts today, and have the confidence of engaging with a credible and reputable provider. Call us on 01252 863700 or email admin@epayme.co.uk, we will be delighted to hear from you, and happy to help.