An umbrella company is simply a company which provides services to clients and employs individuals to help provide those services.
As employees those individuals are entitled to employee rights such as national minimum wage, holiday pay, sick pay etc as well as having entitlement to claim expenses they have incurred in the performance of their duties.
After the initial immigration checks and signed contracts are completed the process is simple. The umbrella company invoices its client/agency for the services provided, from the money received it retains a margin and pays its HMRC contributions, from the money received it then pays its employees for each hour worked, plus holiday pay plus any allowable expenses claimed.
The employees will receive a remittance advice showing money paid, employee tax and national insurance, expenses paid out and net pay.
• By using an Umbrella company you don’t have the administrative burden of managing a Limited Company.
• You will be able to claim any eligable expenses tax free on a weekly basis.
• There are no joining or leaving fees.
• You will be entitled to statutory employment benefits such as Holiday Pay, SSP, SMP and SPP.
Not long at all. As soon as we receive payment from the agency or client, we’ll take into account any expenses, deductions or allowances that apply, calculate your tax and NI contributions and make payments to HMRC on your behalf on a PAYE basis, then transfer the net amount into your bank account the same day.
Because you are! As a Candor PAYE employee your rights are fully protected – you get a proper contract of employment, which means all your admin, employment rights, insurance and accounts are fully taken care of and you pay your tax and NI contributions through the normal HMRC channels, without having to worry about IR35 regulations.
The “24 month rule” states that the cost of travel from your home to your site (temporary workplace) is only allowable as a business expense for as long as you believe the contract does not exceed 24 months working at the same location: once you have a new assignment at a new location the rules will start again.
The Agency Workers Regulations (AWR) came into play on 1st October 2011. The legislation gives workers the right to the same employment/working conditions that they would enjoy had they been directly employed by the employer after 12 weeks in a job.
All workers including those employed via an Umbrella company are affected. Workers who are genuinely self-employed are excluded. For further information visit www.candor.co.uk/agency/awr
IR35, also known as the Inland Revenue 35 was introduced on 6th April 2000. The aim of IR35 is to eliminate the avoidance of Tax and National Insurance Contributions through the use of intermediaries e.g. PSCs.
IR35 is a piece of legislation that dictates how you pay your tax. If you are deemed to be operating in a way exactly like that of an employee, then you have to pay PAYE tax as like those who are in permanent employment. If you are not deemed to be operating in this manner then you can experience tax benefits.
IR35 is in place to prevent disguised employment, using Candor as your employer will mean that IR35 does not apply as your employment status is an employee of Candor as you have a full contract of employment.
Expenses are not paid back to you pound for pound they are used as tax relief within your wages – they are offset against the amount of tax you pay. Expenses allow you to have a reduced taxable income enabling you to take home more of your wages. You can only submit & claim your expenses if you are due to be paid wages from your agency. Expenses can’t be submitted on their own.
Candor has partnered with NOW Pensions to help meet our legal requirements in delivering an auto-enrolment scheme for our Umbrella PAYE Employees (contractors). To find out more about our pension scheme visit this page
Our pricing structure is bespoke. This is to achieve the best value and service for the agency and the contractor. We can accommodate staggered pricing or fixed price models.
All of our contractors are contacted by our Account Management team and given a full explanation of how everything works and the benefits of using Candor. We also provide each contractor with an illustration of their take home pay. Once a call has been completed, we will send the contractor the application forms by post or our electronic signature software Docusign to complete, sign and return.
All contractor have an expense form to complete and return to ourselves by post, email or by sending photographs of their receipts via their mobile phone. The deadline for sending in your expense form to us is 5.30pm on Tuesday.
The deadline depends on the type of payment that you are making. If you are going to make a BACS payment on a Wednesday, then we would require all of your payroll information by 1pm on Wednesday. However, if you are going to be making a same day payment then we would require your payroll information by 1pm on a Thursday. If required we can also accommodate for adjustments.
Every agency and contractor will have a dedicated Account Manager. Additionally you will be able to liaise directly with the Payroll Manager as a secondary point of contact.
We work in partnership with Accountax to ensure that everything we do is compliant with all the latest HMRC legislation and regulations – this means clients can be 100% confident in our services. We also pride ourselves on going that extra mile for each and every contractor as well as being extremely personable and proactive. Additionally, we are open and honest whilst ensuring that clear communication is maintained between ourselves and you as a client, as well as with our contractors and umbrella employees. All of the above are traits that we feel are essential for a successful working partnership.
Our service provides all contractors with a full contract of employment, calculations and deductions for Tax and National Insurance contributions, electronic or paper payslips, take home pay illustrations, professional insurance for Public Indemnity, Public Liability, Employers Liability and a dedicated point of contact in the office.
The process for transferring your contractors across from another provider is simple and straight forward. All we would require is a list of the contractors’ names, contact number, the best time to contact the contractor and their rate of pay. Then we will contact all of the contractors and have them set up for the next week’s payroll. Additionally, if you would prefer, we are more than happy to bring a member of the account management team to your office or go to the individual’s workplace, to ensure that the transfer does not impact your business.
For more information visit our services page.
We have worked with Candor payroll for a number of years and they payroll over 300 people a week for us.
We have a really strong partnership with Candor and have nothing but good feedback from both our consultants and contractors about their service and they are always on hand if we have any queries.
We look forward to continuing our partnership in the future.
- David Lewis, Managing Director
We have developed a good working relationship with the team at Candor. They work in a very professional manner and the payroll process seems to run like clockwork. People at every level in the business are approachable and very helpful.
- Amar Sandhawalia, Director