Umbrella FAQ's

As an umbrella employee, there are some benefits available to you that can provide tax and NI savings via your payslip, For example: Pension salary sacrifice and a Cycle to work scheme.

Key Information Documents were introduced on 6th April 2020 and is an attempt to increase pay transparency for umbrella employees and provide key information to them regarding their assignments.

This article is intended to assist you in understanding your payslip and how each item is calculated.

A P87 form is the document for an Umbrella Employee to use to claim tax relief for expenses of employment.

Because you are essentially an employee, the rules for claiming expenses against your employment income are very strict.

On the whole, no. If you work under an umbrella company, HMRC will deem you to be a permanent employee and therefore can’t claim back costs such as travel and subsistence which are part of your regular commute to a permanent place of work.

A salary sacrifice will lower your National Insurance Contributions whilst boosting your pension, but the amount you could borrow for a mortgage and your entitlement to statutory benefits will both decrease.

Some umbrella employers offer the option of salary sacrifice as part of their own independently administered pension scheme.

Yes, but exactly when you can re-join depends on your employer.

An opt-out from the pension scheme normally lasts for three years.