This is just one of the ways you may with to contract with CK
Why work through an Umbrella company?
The main advantage of working through a payroll company as a contractor is that you are able to offset some expenses against tax, therefore increasing your take-home pay. Although as IR35 will apply to the private sector as well as the public sector then fewer contractors will receive that benefit.
How does it work?
CK Group will have a contract with the payroll company, reflecting the contract we have with the hiring company or client, and you will have a separate contract/agreement with the payroll company reflecting the same terms. Effectively you will be employed by the payroll company.
The payroll company will charge you for processing your pay, either per invoice or as a percentage of your pay. This cost varies from company to company and you should research this thoroughly. CK can provide you with a list of our preferred supplier payroll/umbrella companies on request.
The payroll company will pay Employers’ National insurance on your rate, which is deducted from the rate you would get if you were not an employee (the “Limited Company rate”). You are also entitled to the same holiday per annum as permanent employees at your site. The payroll company may hold back a certain amount of your pay so that you get paid at your normal rate when you take leave or they may pay you for the holidays you have accrued every time you get paid (in which case any leave you take will be unpaid at the time of taking it). You should clarify with the payroll company what their policy is with regard to holidays and any other benefits available.
You will be required to submit your approved CK time sheet at the end of each week, as for a PAYE employee. You will also be asked to complete time sheets for the payroll company so that they know how much to invoice CK for your services. We then pay the invoice received from the payroll company and then they will pay you as per the agreed payment terms you have with them.
The payroll company will cover you for Employers’ Liability Insurance, Public Liability and Professional Indemnity. Most payroll companies will cover up to £5 million as standard. CK Clinical will require proof of this cover from the payroll company.