Working under an umbrella company allows us to provide payroll services on behalf of the contractor which bills the agency which then bills the end client. We provide all Pay As You Earn and National Insurance contributions on behalf of the contractor.
In essence the client is the company for which the contractor works. This could be throughout all levels of employment and within any industries. The client often elect to use contractors as it affords them the ability to temporarily augment their staff or capability without the burden of the legal requirements associated with permanent employees (PAYE, NI, Sick pay, insurances et al.).
Using contractors also facilitates special skills and typically provides the advantage of a broader skill set as the contractor has typically worked with a myriad of companies and organizations during prior contracts.
The agency performs the recruitment process on behalf of the client. Some of the agencies will provide a Pay As You Earn scheme which is a part of their services. This moderates the requirements for the Umbrella Company. However, it requires more people which are capable to the organization. This includes professional accountants as well as, people who are committed to fiscal laws. Most agencies elect to utilize an Umbrella Company.
The contractor working under the Umbrella Company will complete the timesheet and submit it to us (via a secure method e.g. Fax or Web Portal) along with the expense claims which we will then use to invoice the client.