Costs
Umbrella company costs
Firstly, what you should know about our margin:
- It is a flat rate margin
- It does not increase with the amount you earn
- There are no deductions to your payslip for joining or if you decide to leave
- It’s a weekly margin and there is no deduction when you are not working
- It is calculated to be tax efficient
Flat rate, not a percentage
Other Umbrella Companies charge you a percentage based on the amount of your invoice, the amount taken by the service provider increases with the amount you earn, e.g. 5% of £600 is £30 but 5% of £1600 is £80 per week. This is not how we work, as mentioned we just deduct out clat rate margin
No deductions for joining or leaving
You are joining us as our employee - There are no ‘up-front’ costs to join and no long term tie-ins or penalty charges when you leave.
Only when you work
If you only work for 2 weeks in a month due to having a 2 week holiday, you will only see our margin on your payslip for the 2 weeks you have worked; not a full month.
Tax efficient
Our margin is calculated and treated as an expense. This means that although the amount reflected on your payslip is £29.50, the actual net effect on your income once adjusted for tax, is either £17.63 if you are a basic rate taxpayer, or only £15.03 if you are a higher rate tax payer.
NIC is calculated as Employers 13.8% and Employees at 12% (basic rate).