Umbrella Company Glossary
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There is a misconception that umbrella companies are highly complicated. While there is plenty of information to get your head around, they’re far more straightforward than you might have imagined.
To help you understand umbrella companies better, we’ve created an umbrella company glossary that provides simplified definitions for many of the key terms and topics surrounding umbrella companies. Our site is full of resources to assist contractors and freelancers, and many of the definitions below link to further information that we hope you find helpful.
There are currently 6 Umbrella Company Terms in this directory beginning with the letter T.
T
Take Home Pay Calculation (Umbrella)
Before registering with an umbrella company, most contractors will request a take-home pay calculation from a couple of umbrella companies. Take-home pay calculations are an excellent way to see how much you could take home each week/month and the tax deductions made to your pay.
Tax Avoidance Schemes
Tax avoidance schemes are companies set up to enable workers to pay less than the legal amount of tax and National Insurance. Registering with a compliant umbrella company can expect to retain roughly 55-70% of your earnings after all tax deductions are made. Any company offering you significantly more than this is probably a tax avoidance scheme. HMRC has named several tax avoidance schemes you should avoid at all costs.
The Association of Independent Professionals and the Self-Employed (IPSE)
The Association of Independent Professionals and the Self-Employed (IPSE) is the UK's only not-for-profit membership organisation for the self-employed community. IPSE campaigns the government to create a fair business environment encouraging self-employment as a career choice.
The Association Of Professional Staffing Companies (APSCo)
The Association Of Professional Staffing Companies (APSCo) is an international trade body dedicated to raising the standards of the professional recruitment market.
Timesheets
A timesheet is a way to keep a record of how many hours you have worked each week or month. Your manager must sign off a timesheet before being submitted to your recruitment agency or umbrella company (if they require a timesheet to be submitted). Your agency or umbrella company will then invoice your end client for payment for the hours you have submitted.
Top 10 Umbrella Companies
To help make your life easier, the team at umbrellacompanies.org.uk has put together a list of our top 10 umbrella companies. Each of the top 10 is accredited by the FCSA or Professional Passport. And some have special offers at the moment. Please check them out now.