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Umbrella payements?

Discussion in 'Employment & Jobs' started by zxspectrum, Jul 2, 2012.

  1. zxspectrum

    zxspectrum Gigabyte Poster Premium Member

    As some may know Ill be starting the job tomorrow, through an agency. Just going over the rest of the details now etc. They are asking for an umbrella payment agent to which i have no idea what they are on about. After a quick flick on the net, im getting the idea they pay them then they pay me, but i cant understand this at all, seems that they are sending my money to someone else who takes something out of mine.

    Any advice on this folks, or is it dodgy??

    Certifications: BSc computing and information systems
    WIP: 70-680
  2. jk2447

    jk2447 Petabyte Poster Moderator

    I'm sure one of the gang will answer this. What job did you get Ed? Congrats mate
    Certifications: BSc (Hons), HND IT, HND Computing, ITIL-F, MBCS CITP, MCP (270,290,291,293,294,298,299,410,411,412) MCTS (401,620,624,652) MCSA:Security, MCSE: Security, Security+, CPTS, VCP4, CCA (XenApp6.5), MCSA 2012, VCP5, VCP6-NV
  3. zxspectrum

    zxspectrum Gigabyte Poster Premium Member

    I only heard about it last week, its through an agency but its all counts, basically TV repairs and hopefully something on the PC side. At the end of the day its a job and customer focused etc, ill keep plugging away for an IT role

    Certifications: BSc computing and information systems
    WIP: 70-680
  4. RichyV

    RichyV Megabyte Poster Forum Leader


    yes, that's all correct and above board.

    Unless you have set yourself up as a Ltd. Company the agent is unable to pay you directly and an "Umbrella company" will invoice them on your behalf then pay you. You are, in effect, an employee for the Umbrella co.

    I use one that is very good.

    Certifications: B.Sc.(Hons), MBCS. MCP (271,272), MCDST, MCTS (680), MCITP:EDST7, MCSA:WIN7, MCPS, MCNPS
    WIP: 70-686, then onto MCSE: Desktop Infrastructure via MCSA: Server 2012...
  5. Nyx

    Nyx Byte Poster

    nothing dodgy, have a read here: Umbrella company - Wikipedia, the free encyclopedia

    there were quite a few threads about it on certforums as well. In short they allow you to save on tax deducted from your wages by claiming expenses like mileage, lunches etc when you are not a limited company. I have seen one that didn't charge for the first contract, but don't remember what it was called anyway it was some time ago.
  6. Fergal1982

    Fergal1982 Petabyte Poster

    "Unable" is incorrect. Plenty of agencies pay their staff as PAYE. Using a Ltd Co or Umbrella is not mandatory when operating through an agency.
    Certifications: ITIL Foundation; MCTS: Visual Studio Team Foundation Server 2010, Administration
    WIP: None at present
  7. Monkeychops

    Monkeychops Kilobyte Poster

    Temp agencies and such can have you on their books as paye yes, but I think in this instance they are acting as a more of a recruitment agency (finds clients workers, or finds workers jobs) rather than an employment/temp agency (who employee people on their books for temp work).

    So you have the TV repair co wanting to pay for you, the recruiter is likely just there to find the workers and not a temp agency as such to pay them, so there needs to be a mechanism for the TV repair co to pay you.

    If they are like most big companies they won't be allowed/able to just pay an individual directly so you'll have to either go the umbrella route (where you become a PAYE employee of the umbrella company, they take a cut of your pay for sorting it all out) or setup as your own limited company.

    Guessing you can't setup as a sole trader for it to all work either which would be easier I think.

    But it's not dodgy so I wouldn't worry :)
    Last edited: Jul 4, 2012

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