Umbrella
Working Through an Umbrella Company
Working through an umbrella company is an alternative to being paid under direct PAYE by an employer or agency. It guarantees your statutory rights as an employee, and is fully compliant with HMRC requirements; however you should find your take home pay is higher as you can claim the legitimate expenses incurred in your everyday work such as travel and subsistence. For your further peace of mind, umbrella companies are outside the scope of IR35 and Managed Service Companies legislation. These can put you and your client or agency at risk with the HMRC if they believe you are incorrectly classified as self employed, or working through a managed service company.
Why choose Ship Shape Pay for umbrella Payroll?
Low fees and unique benefits – compare us to some major providers:
| Ship Shape Pay | Gabem | i4 Group | Payerise | Details | |
|---|---|---|---|---|---|
| General benefits | |||||
| HMRC compliant | Yes | Yes | Yes | Yes | Read below for more details on all our general benefits |
| Accident Insurance | Yes | Yes | Yes | Yes | |
| Electronic pay transfer | Yes | Yes | Yes | Yes | |
| Pension plan | Yes | Yes | Yes | Yes | |
| Paid holiday / statutory leave | Yes | Yes | Yes | Yes | |
| Fees | |||||
| Gross weekly fees (as of Aug 11)* | £16.90 | £22.00 | £28.00 | £22.00 | More info... |
| Fee free period each new job | Yes | - | - | - | |
| Special Benefits | |||||
| Free company mobile | Yes | - | - | - | More info... |
| Cycle to work scheme | Yes | - | - | - | More info... |
| Personal online account services | Yes | - | - | - | More info... |
| Free personal tax returns | Yes | - | - | - | More info... |
| Childcare vouchers | Yes | - | - | - | More info... |
*Based on pay of over £300 per week (only £9.90 for lower paid workers). Note: all fees and charges are quoted Gross – beware of providers who quote “Net” figures as these may not be applicable to you.
General Benefits Details
HMRC compliant
Ship Shape has passed a full HMRC review and uses HMRC accredited software, ‘Star’ and ‘Sage’ Payroll Professional, plus we have official BACS Bureau accreditation.
Accident Insurance
We have arranged Public Liability insurance cover of £5 million, plus Accident insurance paying £300 a week income support for up to two years. All for just £2.99 per week.
Electronic pay transfer
Ship Shape can make same day payments, by BACS and CHAPS.
Pension plan
It is important to make arrangements for your retirement so we have teamed up with Aviva to offer a Stakeholder Pension scheme. Deductions can be paid under salary sacrifice. The effect of this is that you agree to sacrifice a proportion of your income in return for an equal contribution to your pension fund. As this is deducted from your ‘Gross’ earnings , you receive Tax and National Insurance relief at source.
Alternatively contributions can be made in the usual way and deducted from your ‘Net’ earnings and Aviva will claim the relevant tax relief on your behalf.
You may consider contracting out of National Insurance and having those contributions paid as a rebate into your Stakeholder Pension. This can be beneficial if you are a foreign national and do not want to stay here permanently. It is possible to opt in and opt out on a yearly basis so you are not restricted by the original decision.
Please note that the information on contracting out is given on a no advice basis and we suggest that you consult an Independent Financial Advisor if you are unsure of the implications of making such a decision.
Paid holiday / statutory leave
As an employee of Ship Shape Pay Ltd payment in recognition of holidays and statutory leave can be requested, a benefit unavailable to the Self Employed.
More information about our service
Expenses and subsistence dispensation
Expenses relating to items purchased as part of your work can be off set against your tax liability. Receipts are required with two exceptions:
- Mileage allowance: simply keep an accurate log of your journeys.
- Flat rate subsistence: certain fixed sum allowances are available depending on your hours on site. These can add up to £25 for meals in addition to allowances for accommodation if working away from home.
Business related telephone calls (landline and mobile) and professional fees and subscriptions are two areas to highlight where a deduction against your tax liability is available.
Work related training
The training must relate to your current employment and be designed to help you learn or reinforce any knowledge, skills, or personal qualities which will be useful when performing your duties. Training to achieve a specific qualification for your current role or to participate in charitable or voluntary activities are also allowed.
