What is an Employment Business or Umbrella Company?
As a contractor, an Employment Business (also known as an Umbrella Company) allows you to carry out a number of temporary contracts without the need to manage your own payroll or accounts.
As you then become classed as an ‘employee’ you have access to many benefits usually associated with permanent employment such as Statutory Sick Pay, Statutory Maternity Pay and Statutory Paternity Pay.
How does it work?
You become an employee of Danbro with a view to completing a succession of assignments for various agencies or clients in the course of that employment. We then follow these steps:
- We (Danbro) enter into a contract with either your recruitment agency or the end client for you to do work.
- You carry out the contract and 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 National Insurance Contributions (NIC).
- We make provision for your basic pay for National Minimum Wage and for employers NIC.
- We set aside provision for your holiday pay.
- We make provision for our margin.
- You are paid, subject to PAYE and employee’s NIC and you receive your payslip.
In some instances individuals working through an Employment Business may claim tax relief on commuter expenses, we will assess your eligibility for this when you join us and each time you commence a new assignment.