Summary of changes from April 2007
The Government has deemed that, in order to be fully compliant with current and future legislation, Umbrella Companies must become employer to all of its members. Recent legislation, introduced by the Government to counter tax avoidance, has brought into question the legality of contractors claiming expenses through Umbrella Companies but this won’t apply to contractors working as an employee through an Umbrella Company.
Therefore, in order to give our customers a fully compliant and beneficial service we will be changing the structure of ContractorUmbrella to coincide with the start of the new tax year on 6th April 2007. From this date you will become a flexible employee of ContractorUmbrella with all the employment rights that this entails.
The best news from your point of view is that even if we haven't received funds from your agency/client you will be guaranteed a weekly or monthly payment from us.
As we run a payroll every single working day; we will process all recognized contractor payments the same day they are received in our bank account. For more details please visit our Fees page.
A minimum wage payment will be processed on the last working day of the month, if no payments have been received from your agency/client in that particular month. If you are invoicing weekly, a minimum wage payment will be made for the hours worked on the oldest invoice in the current month. If you are invoicing monthly, a minimum wage payment will be made for the hours worked in the previous month.
For Same Day Payment requests we require notice of at least 2 working days notice prior to your payment being made. This should be made through the website so there is a record of your request.
In order to comply with UK and EEC Employment Law we will deduct a small amount each week/month for holiday pay. This will be based on the mandatory 28 days holiday per financial year. The deduction will be pro-rated and based on a minimum wage payment. The deduction will be just over £20 for weekly paid contractors and just under £88 for monthly contractors. Obviously this means that you will have a fund available to you if you wish to take any holiday during the year. For more information on holiday pay please follow the link.
We realise that the Government's actions will mean a change for all of you but there are many benefits to you, not least the security of employment. If you should have any questions your Account Manager will be pleased to help you.
