Umbrella Company FAQ’s
Q. Why should I opt for an umbrella solution?
An umbrella company offers a convenient way to trade for contractors because of the presence of an all-encompassing contract that provides continuous employment. It’s a good option if you are just in between permanent jobs. It involves a simpler process with no or little paperwork. At Pendulum Contracting Services we enable you to get paid for your contracting work on a PAYE basis. You may be able to claim back legitimate business-related expenses which will subsequently reduce tax liabilities. This is an ideal solution for any temporary worker who is doing short term contractual projects or does not want the hassle of operating a limited company.
Q. How much pay can I take home?
Firstly, how much you earn as a contractor depends on how you decide to trade, either as a limited company or via an umbrella company. Limited company contractors take home around 75-80% of their contract value and umbrella company contractors are entitled to around 60-65% of their gross pay. The take home pay is higher through a Limited company only because contractors working through an umbrella company are seen more as employees of the umbrella company. The take home pay further varies depending on which industry you are working in, the company you work for, your skill set and most importantly what tax code you are being taxed on through an umbrella company.
Q. How do I get started?
The registration process at Pendulum Contracting Services is simple and can be done online or by phone. We will require the following information, preferably via email or post:
- A completed personal details form
- A copy of a valid work visa/permit (if applicable)
- A copy of the photo pages of your passport
- A P45 from your last employer or a Starter Checklist
Once we receive these details, we will contact your Agency or Client to agree Terms. You will then receive a Contract of Employment with us, which you will need to sign and return.
Q. How do I submit my time sheets & Expenses?
It is necessary for you to record your time spent on assignments on the timesheets that are provided to you by your client or agency. Expense Claims where applicable should be recorded on an Expenses Claim Form available from Pendulum Contracting Services. It’s your responsibility to ensure that your timesheets and expense claims are approved and submitted according to the processes mentioned in your Contract of Employment. Please forward copies of all timesheets and expense claims via our online portal.
Q. Can I work on more than one contract?
Yes you have the flexibility to work on multiple contracts simultaneously at no additional cost.
Q. Am I paid when sick or on holiday?
Yes, as your employer, Pendulum Contracting Services will guarantee you full employment rights, including (but not limited to) Statutory Sick Pay, Paternity or Maternity Pay. With regard to holidays, you’ll have the option to receive your holiday pay entitlement together with each payment or have us accrue the value and pay out to you when you claim it (i.e. When you take holiday). If you choose to have your holiday paid with each payment, the value will be displayed clearly on your payslip for you to then set aside if you wish.
Q. Do I need to complete a tax return?
The payments you’ll receive from Pendulum Contracting Services will be subject to PAYE tax and NIC’s before you receive the income and as such, providing you have no additional income, you’ll not need to complete a tax return.