Information on Umbrella Companies

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UMBRELLA COMPANY

The government has introduced new legislation affecting contractors who work within the public sector through their own limited company.  This will take effect from 1st April 2017 and includes those working in the medical profession.  From this date it will not be possible to provide medical services through your own limited company.

NHS Trusts will deduct tax and national insurance directly from your pay and may charge a fee.  This effectively makes the contractor an employee without any employment rights.

Whatever way, you look at this there is no choice as contractors will not be able to use their limited company.

Another way of operating is through an umbrella company and there are plenty around.  Their quality of service, trustworthiness and fees charged will vary.

Complete Accounting Services have researched this market and have set up an Umbrella Company specifically for contractors in the medical public sector.

The contractor would become an employee of our umbrella company.

Once a contract role has been found our umbrella company will sign a contract with the recruitment agency. The employee will also sign a contract of employment with the umbrella company.

Each week or month, the employee will submit timesheet details to the umbrella company

The umbrella company will then submit an invoice to the recruitment agency on behalf of the employee. The agency will then pay the umbrella for the invoiced sum.

At the pre-agreed time, the umbrella company will pay directly into employees bank accounts. They will receive the invoice amount minus income tax (PAYE), National Insurance Contributions (NICs), the umbrella fees, and any other deductions that have been pre-agreed.  Payment will be made by bank transfer.

During employees time with the umbrella company, they will also be able to submit expenses claims for pre-agreed items. They can only claim for expenses which have been wholely incurred in the conduct of their contract work.

Employees pay will incorporate an amount for holiday pay and take into account Employer NI.

Most umbrella companies will charge a fee of about £105.00 per month.  We will charge a fee of £65.00 per month.

Please contact us if you require any further information.