What is an Umbrella Company?
An umbrella company acts an employer for freelancer or contract workers who typically work under temporary contracts. Most of these individuals work through recruitment agencies but can also work directly with an end client.
An umbrella company acts as the employer, a middle man than recruitment agencies and end clients tend to engage directly with as appose to the worker.
Umbrella companies employ workers under a contract of employment which entitles them to full employment rights and subject to certain circumstances, the worker may be entitled to claim expenses.
What are the benefits of being an Umbrella employee?
- You have full employment rights
- You can work safely in the knowledge that your taxes are taken care of
- You have access to a workplace pension scheme
- Typically you can receive more of your income than through a standard PAYE agency
- You can undertake multiple assignments with various agencies, all through one employment making working as a Freelance much more easier
What is my employment status when working through Smartwork?
Once you have registered with Smartwork, you will receive an employment contract which means you will become an employee of SmartWork meaning you will be entitled to full statutory employee benefits
Can I work as a sole-trader/self-employed?
Companies and agencies that utilise contractors are hesitant to engage a sole trader due to the risk of debt transfer. ITEPA 2003 sets out that a recruitment agency risks being held responsible for any employment taxes if the sole-trader is negligent and does not account for them correctly with HMRC. The debt is carried up the supply chain – this does not occur when the agency works with an umbrella company or limited company trading vehicle.
How long does it take to get paid?
Keeping up to date with your timesheets plays a big part in how long this will take. The quicker you get your timesheets to SmartWork the quicker we can raise an invoice for you. If you are submitting your timesheet on time and your agency or client ensures SmartWork has cleared funds in our account before 12 midday, we will run same-day payroll for you.
Once we receive your funds, our Payments Team ensures that the amount we receive matches the invoice which has been raised. Our payroll team then takes into account any expenses, allowances or deductions that may apply to your earnings. Once this is completed we then make payment of your earnings for the net amount the very same day.
How will I be paid?
Here at Smartwork we pride ourselves on our speedy payment service. All funds are processed immediately on receipt from your agency or end client and will reach your nominated bank account on the the same day. Early payments and advances are also available on request with a small charge, just get in touch with one of our helpful Business Managers who will be happy to arrange this for you.
What happens if I get a permanent role?
We’d be sad to see you leave! You just need to email your Business Manager with your last working day and we’ll handle the rest.
As soon as your notice period is up and all outstanding funds have been processed your account will then be closed and your P45 will be sent across to your next employer.
Want to hear more?
Our dedicated Business Managers are always on hand to offer any information or advise you may need. Call them today on Freephone number 0800 434 6446 or alternatively, you can request a call back and one of our advisors will get back to you as soon as possible.