How does an umbrella company work in practice?

If you join wagecorp as your chosen umbrella company, there are steps you will take:

• Once you have secured a contract role, wagecorp as your ‘employer’ signs a contract with your recruitment agency.

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• You will also sign a contract of employment with wagecorp.

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• You complete a timesheet and pass it on to your manager to sign once you have completed a pre-agreed time period on site.

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• Your timesheet is them submitted to both your recruitment agency, and wagecorp, showing how many hours you worked that week / month.

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• Wagecorp will then invoice the recruitment agency, which subsequently bills the end-client. In some cases wagecorp may invoice the end client directly.

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• Once wagecorp receives payment from the agency or end client, we can prepare your payroll for payment to your account. 

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• Wagecorp will arrange the correct deductions for Income Taxes and National Insurance, plus our fee for processing the payroll, and any pension contributions if applicable. If you have certain allowable expenses you have claimed – such as mileage, we will arrange reimbursement. 

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• Wagecorp will then issue you with a payslip which details all of these deductions and your net take home pay.

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• At the end of each tax year we provide you with the required documents to compete your end of year self assessment tax return.

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