UMBRELLA

Essentially you will become an employee of Seymour Valentine, with a view to completing a succession of assignments for various agencies or clients in the course of that employment. This allows the location of each assignment to be treated by HMRC as a ‘temporary workplace’ as long as you don’t expect to work there for longer than 2 years.

• We (Seymour Valentine) enter into a contract with either your recruitment agency or the end client for you to do work for the client.
• You do the work. The agency or end client pays us the rate (known as the contract rate) to cover both payment for you and the costs related to your employment (such as employer’s NIC).
• We make a provision for your basic pay (or National Minimum Wage).
• We make a provision for Employer’s National Insurance Contributions.
• We set aside provision for your holiday pay.
• We set aside provision to reimburse your expenses (the amount of your taxable pay must be at least Minimum Wage, if reimbursing your expenses pushed your pay below that level we would have to hold back some of your expenses claim until there is sufficient money available).
• We make a provision for our margin.
• You are paid, subject to PAYE and Employee’s National Insurance Contributions. Your expenses are reimbursed and you will receive a payslip.

Am I paid when I’m sick or on holiday?

Yes, as your employer, SV will guarantee you full employment rights, including (but not limited to) Statutory Sick Pay, Paternity or Maternity Pay.  With regard to holidays, through SV you’ll have the option to receive your holiday pay entitlement together with each payment or have SV accrue the value and pay out to you when you claim it (i.e. When you take holiday).  If you choose to have your holiday paid with each payment, the value will be displayed clearly on your payslip for you to then set aside if you wish.

Do I need to complete a tax return?

The payments you’ll receive from SV will be subject to PAYE tax and NIC’s before you receive the income and as such, providing you have no additional income, you’ll not need to complete a tax return.

Do I pay SV for their service?

SV retains a margin on the assignment income we receive from the agency for the work you undertake.  The rate will vary depending on the agency you are on assignment with.

How and when am I paid?

You’ll be paid by SV after accounting for your PAYE taxes and any expenses you claim. Exactly when you will be paid will depend on the agency you are working with however SV will ensure you are paid in a reliable and compliant manner each period.

How does umbrella benefit me?

As an umbrella employee, you receive all the benefits of permanent employment, including full statutory UK employment rights, without losing the freedom that comes with freelancing.  Additionally, providing certain criteria are met, you may claim expenses which ultimately allows you to receive a proportion of your contracting income gross, meaning you’ll typically take home more than through a standard agency PAYE process.  See our Expenses Policy for more information.

How much can I save?

The answer to this will depend on the hours you work and the expenses you incur. Take a look at your take home pay calculator in the section below for an approximate guide.  For a more detailed calculation, please call us

What expenses can I claim?

The expenses you can claim will depend on your circumstances.

Who is my employer?

SV will become your employer.  As soon as you decide the umbrella solution is a route you wish to take, and on receipt of your application form JSA will complete your ID/right to work checks and then issue you with an employment contract.  This sets out the terms of your employment with JSA.