Do you have any questions about how umbrella companies work? Whether you’re new to contracting or have been in the industry for a while there may still be some areas you’re unsure of.
Have a look over the questions we’re frequently asked by contractors and consultants below for some more clarification.
Umbrella Company FAQs
What is an umbrella company?
An umbrella company employs contractors, typically working on assignments found by recruitment agencies. They handle your payroll, calculating and paying income tax (PAYE) and National Insurance for you.
How do I join Focused?
You can sign up in less than 10 minutes by phone or online.
What is the umbrella margin?
This is the fee Focused keeps from the money they receive from the agency. It covers their costs like staff, IT, and insurance. The margin is agreed upon with the agency beforehand and disclosed to you.
Benefits and Entitlements
Do I get sick pay?
Yes, if you contact Focused immediately you may self-certify for the first 7 days and thereafter we would need to see a doctor’s certificate. If you then qualify for Statutory Sick Pay will will make the necessary payments to you as usual.
What about maternity, adoption or paternity leave?
Yes, you may be entitled to Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), or Statutory Adoption Pay. Contact Focused with the relevant forms to see if you qualify.
Getting paid
Am I insured?
Yes, as a Focused employee, you have Employers Liability, public Liability and professional indemnity insurance up to £10m.
How often will I get paid?
This depends on the agency’s payment terms, typically weekly or monthly.
How will I know I’ve been paid?
You’ll receive a payslip and a text message notification for each payment. You can also download payslips online after 6 pm on your payday.
Employment status
Do I need to worry about IR35?
No, as a Focused employee, you pay standard income tax and National Insurance, so IR35 (tax rules for contractors) doesn’t apply.
Am I employed or self employed?
You’re considered an employee of Focused. You’ll have an employment contract and receive employee benefits and continuous employment while Focused handles your taxes and insurance.
Who is my employer, Focused or the agency?
Focused is your direct employer. You don’t have a contract with the agency.
Still unsure on something in particular? Our friendly contractor services team are on hand to help. simply call 0161 923 0210 from 9am-6pm, Monday to Friday.