IR35 – Are You Ready?

Who are you currently working with?

Thank you for enquiring about JSA’s umbrella solution. 

Umbrella vs Ltd – let’s explain

When you provide your services through your own limited company, the agency has a contract with your company for its services (i.e. providing you to fill a contract role), and the agency pays your company a fee for these services.  This fee is what you might refer to as your ‘day rate’, or the ‘assignment rate’.

From this fee, your company accounts for its costs (accountancy fees / corporation tax, for example) and then makes a payment to you, in a structure that you will likely determine as a director of your business.

When you work through an umbrella company, you become employed by the umbrella, so the umbrella takes over the role that your limited company previously filled.  The umbrella company will now supply you to the agency as its employee, and the agency will pay a fee to the umbrella company.

Like your limited company did previously, the umbrella company will account for its costs (Employers NIC for example) and will retain a profit margin before paying a salary to you.   Unfortunately, you cannot determine the structure of this payment, as it is all salaried income, with full Tax and National Insurance deducted before you are paid into your personal bank account.   

The detail 

As an employee of an umbrella solution, you can work on numerous assignments for agencies and end clients, without having to change employers and without having to run your own business.

You’ll have an employment contract with JSA that offers full employment rights.  We engage with the agency under a contract for services and in turn, the agency will have a contract with the end hirer.

Payment for the work that you do follows the above chain.  The end hirer pays the agency which in turn, pays JSA for our services.  From the fee we receive, we deduct our margin and calculate any employment related costs (e.g. Employers National Insurance).   After this is done, we calculate your gross taxable pay.

Income tax and National Insurance is deducted, and the Net Salary is paid directly into your personal bank account. 

You’ll receive a reconciliation and a payslip that sets out both what we have invoiced and received, and what we are paying to you.   

So what are the benefits?

• You’ll retain the flexibility that you’ve been used to without any of the administration. 
  •  JSA will raise invoices, chase payments and complete all the company administration that you previously had to complete.
• You will be employed by JSA, with full employment rights.
• You’ll have access to our online portal, where you can view payslips, input timesheets, communicate with JSA and have full control of your employment information.
• We are open from 8am to 8pm Monday to Friday, and from 9am to 12pm on Saturdays. You can focus on your work and speak with us when it suits you.
• FCSA compliance accreditation; this means you have peace of mind as we have been successfully audited against current laws and regulations.
• Exceptional customer service; you can expect the best levels of service.
• You’re covered by our professional insurance package - £5 million Professional Indemnity, £5 million Public Liability and £10 million Employers liability.
• JSA perks; access to special offers and retail discounts.  Just one of the many employee benefits you’ll receive.
• Established in 1989; compliance, customer service and professionalism are at the heart of everything we do.