Please complete the form
Thank you for enquiring about Workwell's umbrella solution.
The sign up form is below, but before you complete this, we understand that you’re likely to have lots of questions about umbrella and how it compares to working through your own limited company, so let us steer you through it.
Umbrella vs Ltd – let’s explain
When you provide your services through your own limited company, the agency has a contract with your company for its services (i.e. providing you to fill a contract role), and the agency pays your company a fee for these services. This fee is what you might refer to as your ‘day rate’, or the ‘assignment rate’.
From this fee, your company accounts for its costs (accountancy fees / corporation tax, for example) and then makes a payment to you, in a structure that you will likely determine as a director of your business.
When you work through an umbrella company, you become employed by the umbrella, so the umbrella takes over the role that your limited company previously filled. The umbrella company will now supply you to the agency as its employee, and the agency will pay a fee to the umbrella company.
Like your limited company did previously, the umbrella company will account for its costs (Employers NIC for example) and will retain a profit margin before paying a salary to you. Unfortunately, you cannot determine the structure of this payment, as it is all salaried income, with full Tax and National Insurance deducted before you are paid into your personal bank account.
As an employee of an umbrella solution, you can work on numerous assignments for agencies and end clients, without having to change employers and without having to run your own business.
You’ll have an employment contract with Workwell that offers full employment rights. We engage with the agency under a contract for services and in turn, the agency will have a contract with the end hirer.
Payment for the work that you do follows the above chain. The end hirer pays the agency which in turn, pays Workwell for our services. From the fee we receive, we deduct our margin and calculate any employment related costs (e.g. Employers National Insurance). After this is done, we calculate your gross taxable pay.
Income tax and National Insurance is deducted, and the Net Salary is paid directly into your personal bank account.
You’ll receive a reconciliation and a payslip that sets out both what we have invoiced and received, and what we are paying to you.
So what are the benefits?
The calculations are for illustrative purposes only and are based on several assumptions.