A Guide to Your Umbrella Pay
How Umbrella Company Payroll Works for Contractors
How Umbrella Pay Works
Register
You register with our Employment Umbrella and become an employee of Trafalgar.
Contract
We’re sent the contract for your services for a specified number of hours at the rate you agreed with your agency or direct client.
Invoice
Each week or month (depending on your contract) we send an invoice to your agency or direct client for the work you’ve done.
Payment
Your agency or direct client forwards the funds to us, you'll see this on your reconciliation sheet (pg 2) as 'Contracted Rate'.
Company Deductions
We make the statutory deductions relating to your employment with us (Employer's National Insurance and Apprenticeship Levy) and pay them directly to HMRC. We retain our margin and deduct any contributions you're opted into. These are all broken down in the 'Company Deductions' section on page 2 of your payslip.
Your Deductions
We deduct Employee's National Insurance and Income Tax and pay them directly to HMRC, you'll see these on your payslip (pg 1) in the 'Deductions' section.
Take Home Pay
We pay you your take-home pay through. This is shown in the 'Paid' section (pg 1).
What Happens When You Get Paid?
Every time we pay you, we send you a text message to let you know, and at the same time we put a payslip on your portal. It’s a 2 page document – page 2 is a reconciliation sheet and page 1 is your payslip.
It’s really important to understand what these pages tell you, so the following is designed to help explain how your pay is worked out.
We start on page 2 , your reconciliation sheet, as this shows the income we receive from your agency for the work you have done. There are separate breakdowns for company deductions.
What remains after these deductions is yours. Your gross pay is shown at the end of the Pay Summary section of your reconciliation sheet and this is carried over to page 1, your payslip, as illustrated in the sections below.
Understanding Your Reconciliation Sheet
Tap or Hover on the dots to learn more!
This section summarises what happens with the money sent by your agency
This section breaks down all the money sent by your agency.
In this example there's pay for a week
This section breaks down the deductions we make from the contracted rate. We retain our margin and make the deductions required by law.
Holiday pay is paid back to you.
We'll email you information about the pension scheme once you start work.
Understanding Your Umbrella Payslip
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Calculate Your Take-Home Pay
For more information on Take-Home Pay, and to calculate yours, check out our FREE Umbrella Pay Calculator.
Questions? Get in Touch.
If you have any questions about the contents of this guide, or are interested in joining Trafalgar Umbrella, head to our get in touch page now and connect with one of our specialist advisors.
