New to Contracting?
Everything you need to know about working through an umbrella company — explained simply.
What is an Umbrella Company?
An umbrella company acts as your employer when you work on contract assignments. Instead of dealing with the complexity of being self-employed or running a limited company, we take care of everything for you.
You work your assignment as normal. We handle all the payroll, tax, National Insurance, and admin. You get paid into your bank account — just like any other job, but with the flexibility of contracting.
You Work
We Handle the Rest
You Get Paid
How Your Week Works
It really is this simple. Three steps, every week.
Submit Your Timesheet
Log into our online portal and create your timesheet. We’re notified automatically once it’s complete.
We Invoice Your Hiring Partner
We create and send your invoice the same working day. You’ll get a WhatsApp message each time we send it across.
Get Paid Same Day
Once your hiring partner pays us, we process your payroll and transfer your net pay the same day. Payslip emailed, WhatsApp notification sent.
The Full Picture
Here’s the complete end-to-end process, from signing up to getting paid.
Sign your worker contract
You enter into a worker contract directly with No Worries Red Umbrella.
We contract with your hiring partner
We sign a business-to-business contract with your hiring partner (recruitment agency, MSP, or end client).
Submit your timesheet
You complete your timesheet through our portal, and log time with your hiring partner’s system as required.
Client authorises your hours
The end client confirms the hours or days you’ve worked via the timesheet system.
We invoice your hiring partner
We raise an invoice covering your work plus any agreed chargeable expenses.
Hiring partner invoices the client
Your hiring partner invoices the end client for the completed work.
Client pays the hiring partner
The end client settles the invoice with the hiring partner.
Hiring partner pays us
The hiring partner pays us according to their payment schedule.
We process your payroll
We deduct PAYE, NI, and any other contributions, then transfer your net pay directly to your bank account.
You receive your payslip
Your payslip showing rate of pay and all deductions is available online, and you get a WhatsApp confirmation.
Your Employment Status
As a contractor with No Worries Red Umbrella, you are a worker under the Employment Rights Act 1996. Although you work on temporary projects, you are employed for tax purposes. We take care of all payroll taxes and administration on your behalf.
Your Rights as a Worker
Understanding Your Pay
Tax Codes
Your tax code determines how much is tax-free. The standard code 1257L means the first £12,570 is tax-free. Earnings above this are taxed at 20%, then 40% above £50,270, and 45% above £125,140.
Why Employer’s NI?
Your contract rate isn’t your salary. Employer’s NI and the umbrella margin are deducted first. In most cases, your contract rate already accounts for this and is higher than an equivalent permanent role.
Take-Home Estimate
As a general rule, expect to take home between 60% and 75% of your contract rate. Higher earners pay more tax, so the percentage varies. All compliant umbrellas deduct the same taxes.
Holiday Pay
You’re entitled to 5.6 weeks (28 days) paid holiday per year. Holiday pay is calculated at 12.07% of your rate. You can choose to receive it weekly or accrue it for when you take time off.
Expenses
Since April 2016, most personal expenses can no longer be claimed. Only pre-agreed chargeable expenses (invoiced on top of your timesheet) can be reimbursed tax-free.
Watch Out
Any provider promising 90%+ take-home pay is likely a loan scheme. HMRC regards these as tax avoidance. If it sounds too good to be true, it probably is.
Contact Me
Don’t have time to read through the details? No problem — just drop us your info and we’ll take it from there.
Choose to have one of our friendly team give you a call, or we can send you an introductory email with everything you need to know — straight to your inbox, ready when you are.
It only takes 15 seconds. Fill in the form and let us do the rest.
Contact me
Getting Set Up is Easy
Three quick steps and you’re ready to start working.
Sign Up Online
Complete your details through our portal. The whole process takes about 10 minutes.
Verify Your Identity
Quick digital ID check through our Yoti partnership, plus a right-to-work verification.
Start Working
We confirm your hiring partner details, set up your portal access, and you’re ready to create your first timesheet.
Umbrella vs Limited Company
Not sure which route is right for you? Here’s a quick comparison.
|
Umbrella
|
Limited Co.
|
|
|---|---|---|
| Admin | Zero — we handle everything | High — accounts, filings, VAT |
| IR35 | Not applicable | Must be assessed per contract |
| Tax Efficiency | Standard PAYE | More tax planning options |
| Insurance | Included | You arrange & pay |
| Pension | Auto-enrolled | You arrange |
| Setup Time | 10 minutes | Days to weeks |
| Best For | New contractors, simplicity | Experienced, higher earners |
Not sure? Most new contractors start with umbrella — it’s the simplest way to get going.
Learn about our Limited Company serviceYou’re Covered
Insurance Included
All our employees are covered at no additional charge:
- £10m Employer’s Liability
- £5m Public Liability
- £5m Professional Indemnity
Workplace Pension
You’re automatically enrolled into our Smart Pension scheme. The minimum contribution is 8% (combined employer and employee). You can adjust your contributions at any time through salary sacrifice, giving you tax savings.
Learn MoreReady to Get Started?
Hundreds of contractors trust us with their payroll every week. We’ve been doing this since 2014 — you’re in safe hands.
Set up takes about 10 minutes. If you have any questions, our friendly team is here to help.