Find the answers to frequently asked questions about Paraplus' umbrella payroll scheme.
What is an umbrella payroll company?
An umbrella payroll company is an organisation that acts as an employer to temporary and contract workers who work on fixed term contract assignments; usually through a recruitment agency. Umbrella companies tend to be used by individuals on short-term contracts in between permanent roles, or by those long-term contractors who do not want the admin hassle of running their own limited company.
How does an umbrella payroll company work?
In brief, a Pay-As-You-Earn (PAYE) umbrella company will process timesheets on behalf of the temporary worker and issue an invoice to the hirer. When payment of the invoice is made, the umbrella company will typically pay the contractor using a standard PAYE model, deducting all necessary tax and National Insurance contributions.
Why would contractors use an umbrella payroll company?
Umbrella companies are largely used by contractors who want to focus their efforts on completing their current assignment, or identifying future contract opportunities, rather than processing timesheets or invoicing. As well as saving time, there is a financial aspect to consider; there are significant set-up and registration costs associated with setting up a limited company. In addition, individuals would be entitled to statutory payments including holiday pay.
Can I work on two assignments at the same time?
Unlike some umbrella companies, with Paraplus, you can work on two assignments at the same time. All you need to do is contact your agency or hirer and request a copy of your assignment and process the paperwork in the normal way via the online portal. We’ll then assist with all the necessary PAYE documentation and HMRC compliance.
Can I move to Paraplus from my existing umbrella company?
If you’re currently employed by a different umbrella company and you wish to move to Paraplus, the process is simple. All you need to do is contact our employee care team on 0844 846 0444 and we’ll set you up on our system. We’ll also manage the relationship with your agency or hirer for you.
What is included on my Paraplus payslip?
With Paraplus, you’ll receive an easy to understand, itemised payslip that will include:
- the money we received for your services/ work for a given period
- the assignments you’ve worked on, your job role and pay rate
- details of salary, including your holiday pay and statutory payments
- any deductions from your salary, including PAYE tax and employers NI
Click here to view an example Paraplus payslip.
Can I claim travel and subsistence expenses?
As of Monday April 4th 2016, Paraplus will no longer be able to accept any claims you wish to make for expenses incurred for travel and subsistence (meals etc.) whilst on your temporary assignment.
This is because of legal changes under the Government’s Finance Bill which will come into force on Wednesday April 6th 2016.
Under this new legislation, tax relief on travel and subsistence expenses for temporary workers is no longer available if you are subject to ‘Supervision, Direction or Control’ (SDC) at your temporary assignment. As the law additionally assumes that all temporary workers are subject to SDC, the Government has ruled that these expense claims will no longer be allowed.
What is my holiday entitlement?
As a Paraplus employee you’ll be entitled to 28 days (including bank holidays) paid holiday each year.
Your holiday pay is accrued and paid out when you take leave, not rolled up and paid as part of your weekly wage. In other words, you put 12.07% of the basic hours and basic pay you earn each week into a pot/kitty until you take your holidays.
The reason it is 12.07% is because this is the same as you taking 28 days holiday across a full working year of 260 days.
When you book a holiday we then have to work out how much to pay you for each day. This is because you might have worked on different jobs, at different pay rates, for us. So we have to look at your average daily pay over the 12 weeks before the week of your holiday and use that as your daily holiday value.
This does mean as you move from job to job, or the hours you work each day/week change, what you get paid for a day’s holiday might change – it might seem strange but it is the fairest way to do it and follows government advice.
When can I take my holiday entitlement?
As a Paraplus employee, you need to use your full holiday entitlement by 31st March as our financial year runs from April to March.
How do I book my holidays?
Your requested holiday dates will be submitted to your agency for approval which can take a 1-3 working days – you can check whether they have been approved for payment via MyParaplus.
What happens if my hours have been inputted incorrectly?
If you check your account via the online portal or mobile app at the beginning of the week and notice that your hours for the previous week are incorrect or missing, the first thing you need to do is call your agency as we do not input hours, these are provided to us by your agency.
Any missing hours, provided that your agency and the end user agree, can be added prior to processing deadline.
How do I change my bank details?
You can update your bank details by logging in to the online portal and completing the Change of Bank Details form.
To find out more
For more information about working with Paraplus, simply give our employee care team a call today on 0844 846 0444, or submit your query using our online form.