How do I get paid via a payroll umbrella company?

Once set up, getting paid via the umbrella company is a very simple and straightforward process.
You will need to agree with your agency or end client how often to submit timesheets and expense claims. Authorised timesheets are then passed to your agency, who in turn will copy them on to us. Your agency will then invoice the end client and Competex Pro will invoice the agency.

If you are working directly for the end client, so also Competex Pro will work directly to the end client.

Once we receive your timesheets and expense claim forms, and we have received payment from your agency or end client, we will pay you and issue you a payslip. Some agencies operate accelerated payment systems in which case you can expect to be paid extremely promptly.

Pay Structure

Competex Pro will structure your pay in a particular way so as to comply with payroll umbrella company regulations.

When you work through Competex Pro the fees and expenses paid by the client, for the work that you undertake on assignment, are kept in a ring-fenced ‘fund’ that is personal to you and devoted entirely to supporting you as one of our ‘employees’. After deducting our administration margin, this fund is used to pay:

  • Your pension contributions if applicable (paid free of tax)
  • Any other expenses of employment due to you and paid free of tax, but only if allowable by HMRC.
  • Employer’s National Insurance on your salary
  • Any other costs of employment that may be applicable (e.g. Automatic Enrolment, Apprenticeship Levy)

The entire remainder of the fund is paid to you as salary, from which tax and employee’s National Insurance is deducted.

Your salary is calculated in three parts:

  • Basic pay – this is calculated on the basis of a standard 7 hour day paid at a rate equivalent to the national minimum wage.
  • Bonus – this is the balance of the amount available from the monies generated by you from your assignment and paid by the end-client to us. The amount will fluctuate depending upon what, if any, expenses are paid out by Competex Pro on your behalf, by way of salary sacrifice.
  • Holiday pay – this is a statutory calculation calculated at 12.07% of your basic pay and bonus.
  • Expenses – the payment of expenses free of tax depends on the nature of your work.

    Although calculated as described above, the basic pay and bonus are brought together as a single figure on your payslip and referred to as ‘pay’. Holiday pay and expenses are itemised separately.

    Amy FowlerHow do I get paid via a payroll umbrella company?