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  4. What is a KID? (Key Information Document)
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  2. Umbrella FAQ's
  3. What is a KID? (Key Information Document)

What is a KID? (Key Information Document)

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.

The Key Information Document should be provided to the prospective employee, prior to terms being agreed, enabling them to understand what deductions will be made from their pay before they make a decision whether to accept the engagement or not.

What information should a KID include?

The KID should be a concise document and address the key aspects of employees’ assignments as follows:

  • Name of employee – This isn’t specifically required but ensures the KID is personal to the individual employee;
  • Nature of contract – As an umbrella employee, you will be engaged on an employment contract;
  • Who pays the employee – This will be your umbrella employer; 
  • Gross rate of pay – Determined as your hourly rate from your initial illustration;
  • Payment dates and intervals – Usually when your umbrella company is paid by the agency;
  • Statutory deductions – This normally comprises Employers NI, Employers pension costs and Apprenticeship Levy;
  • Any other amounts retained from employee income – Namely your umbrella company weekly/monthly margin;
  • Expected or minimum rate of pay to you – The minimum rate of pay is the National Minimum Wage;
  • Any other deductions from your gross pay required by law – This comprises Employee’s NI, Employee’s pension costs and student loan deductions (if applicable);  
  • Any other fees for goods and services;
  • Any employee benefits;
  • Holiday pay entitlement – This amount is generally advised to be “kept to one side” on each payslip for when you are on holiday.
Updated on 27th July 2020

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