Here’s why receiving a deemed salary might not pay…

If you’ve been receiving a deemed salary since the rule change for working in the Public Sector back in April, you’re likely to have noticed a drop in the amount you’re taking home.

When you combine that with the ongoing responsibilities and costs of being a director of your own company, it simply doesn’t pay.

Here are 5 reasons why you should consider using an Employment Umbrella instead of being paid via a deemed salary…


Firstly, here’s an example – if you work a 37.5 hour week with a rate of pay of £25 per hour, your take-home pay would be £619.36 with a deemed salary. Working through an Employment Umbrella this increases to £621.83.* It might not seem like a big difference but that’s where the benefits of an Employment Umbrella come in.


There’s a lot more involved in maintaining a limited company compared to working through an Employment Umbrella.

With your own limited company, you’re ultimately responsible for submitting annual company accounts, filing tax returns and maintaining accurate financial records, as well as complying with the Companies Act 2006. Going down the Umbrella route means you won’t have any of that on your mind. This is where that couple of extra pounds start to become a whole lot more appealing.


Working through an Employment Umbrella also unlocks other benefits that you might not have seen in a while. This includes Statutory Payments such as Sick Pay and Maternity/Paternity Pay. They become an entitlement rather than a wish list and you’ll be entitled Holiday Pay, as any other employee would.

The amount you’re due is calculated and advanced with every payment you receive, so you can set it aside, if you choose, for when you take a break. So, which way to the beach?


If you’ve ever looked for a mortgage or other financial products you’ll know it can be challenging when you’re self-employed.

Working through an Employment Umbrella means you’ll still have the flexibility of working from contract to contract. However, you’ll also retain continuity of employment, often giving you access to more product options with more attractive rates.


With our Employment Umbrella you’ll also get relevant insurance cover without paying those additional premiums you’ll be used to with your own limited company, our solutions include
  • Personal Accident Insurance¨
  • Professional Indemnity £5,000,000¨
  • Public/Product Liability £5,000,000¨
What’s more, you’ll also get access to our BUPA Medial Cash Plan for you and up to four children. This gives you cash back on things like dental treatments and medical prescriptions, whether you use the NHS or a private practice, making those emergency fillings a little easier to swallow!

Finally, if you want to know more, call us on 01235 600 140.

*Deemed salary figures may vary depending on your recruitment agency. Some exclusions may apply†. Please be aware that this is not a contractual right and at our absolute discretion we reserve the right to terminate participation in the scheme, to substitute another scheme, or alter the benefits available to you under any such scheme. You can become a member of this scheme if you’re aged between 18 and 69, and are a UK resident.
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