An ‘Umbrella' company is simply the company that you join as an employee through which your wages are paid. The umbrella company is responsible for paying your PAYE tax and NI contributions direct to HMRC. If you join our umbrella company you'll be able to offset your business expenses on a weekly (or monthly) basis; this can give you a major benefit compared with PAYE where no weekly (or monthly) offset is possible.
This umbrella service is the only service open to employed contractors. To qualify for a Personal Trading Company or the Construction Industry Scheme, you need be self-employed.
For more information about umbrella compnies, please call 0845 226 1843 or email the contractor's team.
The umbrella company process
The registration process for umbrella company contractors working through agencies is a simple one. Just email our Contractors team to start the registration process.
If you are unsure of your employment status - employed or self-employed - we offer a quick self-employment test (OSET) that helps you check your employment status. If you qualify as self-employed, the CIS scheme or setting up a PTC might be more tax efficient for you. If you qualify as an employee, then the umbrella option is the appropriate payroll service for you. Self-employed workers can also chose the umbrella service if you prefer.
For each week that you work we collect your approved timesheet, and pay rates direct from your agency. We process your business expense reclaim and timesheet, making payment direct to your bank account on the Friday following your working week. For example, for a timesheet that ends Friday 5th, the payment will be made on Friday 12th. You will be sent a payslip each time we process a payment.
About umbrella company expenses
We will give you all the guidance you need on allowable business expenses, which you can claim through the umbrella company. There's also our specialist tax team on hand to help you with your expense issues.
Umbrella company Insurances
Oriel Umbrella automatically provides public liability cover as well as employer's liability cover to all umbrella workers. In addition, we have added a personal accident policy to cover you whilst you're working.
The main limits of the cover are:
- Employer's Liability: £10,000,000
- Public Liability: £2,000,000
- Products Liability: £2,000,000
- Personal Accident: £200 per week for up to 52 weeks if an accident at work prevents you from working
- (there is a 2 week deferment period)
- Loss of limbs or eye or total hearing or death whilst working: £50,000
Eligibility to work in the UK
All subcontractors must be able to verify their eligibility to work in the UK. Oriel Associates has adopted the 2004 legislation relating to the prevention of illegal working in the UK. Under Section 8 of the Asylum & Immigration Act 1996 and Race Relations Act 1976, proof of identification must be obtained for each individual. Therefore all registrations must be accompanied by a passport (we recommend you send this by registered post, which we will return by registered post).
If you are unable to provide a passport, please contact our payroll department on 0845 226 1823 to discuss which alternative documentation is suitable as proof of eligibility to work in the UK.
FAQs
Subcontractors are legally required to prove that they are eligible to work in the UK. All new contractors will need to provide their passport as proof of identity.
If you are unable to provide a passport, please contact our payroll department on 0845 226 1823 to discuss which alternative documentation is acceptable as proof of eligibility to work in the UK.
What is a contractors Umbrella company?
The Umbrella company is simply the company that you join as an employee through which your wages are paid and the Umbrella company is responsible for paying your PAYE tax and NI contributions direct to HMRC.
What are the benefits to contractors of an Umbrella company?
Being paid through an umbrella company allows you to offset business expenses against your income on a weekly (or monthly basis). In this way you can claim tax relief for your business expenses at the earliest opportunity increasing your take home pay.
How does Oriel's Umbrella company work?
Oriel Contractors Limited is an umbrella company to which you become an employee of Oriel Contractors Limited and enables you to claim tax relief on your business expenses. Statutory employee deductions such as NIC and tax will be made from your gross income, as will our processing fee; we will also identify your holiday entitlement on your payslip. We then offset your business related expenses, which you have submitted, against your income to calculate tax relief. Using the Oriel Contractors Umbrella Solution can increase your take home pay compared to being paid through a standard PAYE scheme.
Will I be eligible for holiday pay while working through Oriel Contractor's Umbrella Company?
As an employee of Oriel Contractors you will be eligible for Holiday Pay, SSP and other employee rights.
How much will an umbrella company cost?
The only cost to you will be the weekly processing fee (charged only for the weeks you work), you will not be asked for a joining fee and there is no penalty for leaving us.
How do I let Oriel Contractors know my hours worked?
We will arrange with your agency to get your authorised hours sent straight through to us for payment. If you are not working through an agency we will arrange to receive your timesheets directly.
How and when do I get paid through an umbrella company?
We process our payroll on the Wednesday following the working week and make your net payment direct into your bank account on the Friday. I order to meet these deadlines we will need all timesheets by 4 p.m. on the Tuesday and your agency will have to make payment to Oriel Contractor's by the Friday when your payment is made. If deadlines are missed we have the capability to make special payments but there is a charge for this service.
What benefits do I get from the Umbrella company service?
Oriel Umbrella Service helps make contracting hassle free, within our service we provide:
- Detailed pay reports
- A personal point of contact
- Market leading tax advice
- Accident cover whilst you are at work
- Public and Employers Liability insurance
- Oriel contractors will complete you year end tax forms i.e. P60's
Why should I claim expenses?
By claiming your expenses on a weekly (or monthly) basis you can maximise your take home pay. This facility allows you to receive tax relief on your business expenses throughout the year rather than waiting till the end of the tax year to claim relief as part of your tax return. This method helps you to keep track of your expenses and removes the risk of losing the benefits altogether if you don't complete a tax return. In the majority of cases HMRC will not prompt you to complete a tax return even though you may be due a tax refund. Through Oriel Contractors you can claim back business expenses related to accommodation, subsistence, professional courses, tools, business related phone calls, mileage and work clothing that are necessary for the performance of your duties on assignments. Oriel Contractors will supply you with a detailed brief on Allowable Business Expenses if you call us on 0845 226 1823 or you can download from the members site once you are registered.
How do I claim my expenses?
Each time you are paid we will send you an expense claim form. You should complete this in time with our guidelines and post it to Oriel Contractors along with your VAT receipts. Your expenses will then be offset against your next available payroll payment.
What is the maximum level of Expenses I can claim?
Your gross income less business expenses must exceed the minimum wage for the hours you have worked. As long as this is the case there will be no limit of the amount of business expenses you can claim.
Does Oriel Provide Insurance?
As a member of Oriel Contractors umbrella you will have employers and public liability insurance and personal accident cover at no extra cost.
Do I get holiday pay with an umbrella company?
The amount of holiday pay is detailed on your payslip and is paid across as you work so you will need to retain this money to cover your holidays. If you would rather we retained your holiday pay and paid you when you take your leave please let us know.
What do I do if I change Agency?
Please call us if you change agency and we will update our records and contact your new agency and arrange to make payments for them.
Is there a charge to change agencies?
There is no fee charged for changing agencies, just let us know and we will do the rest.
Can I work for more than one agency at once?
Yes, but keep Oriel informed of the agencies you are using
How is my pay calculated through umbrella companies?
To maximise your pay Oriel will calculate your pay based on the national minimum wage Oriel will invoice your agency for the hours you have worked based on your approved time sheet.
- The Business Expenses you incur are offset against the gross income to reduce your PAYE and National Insurance charges
- Holiday pay is separately identified and paid out on a weekly basis
- The net payment is shown at the bottom of your payslip and shows your take home pay after all deductions have been made.
