When engaged through an Umbrella company, it’s crucial to be aware of specific payment terms and deductions. Here is a guide to help you navigate through them.

Assignment Fee: This represents the advertised rate for a role and is the payment made by the employment agency to the Umbrella company for providing its employee (i.e., you).

Gross Rate of Pay: As an employee under our Umbrella, your Gross Rate of Pay is typically the assignment fee minus the Umbrella margin and employment costs.

Umbrella Margin: Every Umbrella company deducts a margin from the assignment fee received from the agency.

Income Tax: Your salary is subject to Income Tax, with different tax bands (basic rate, higher rate, and additional rate) applied based on your earnings.

Employment Costs: These are the expenses that your employer must consider, such as Employers’ National Insurance, associated with the salary paid to you.

Employee National Insurance: As an employee of the Umbrella company, you are responsible for paying National Insurance.

Calculation of Umbrella Pay: Each payment cycle from Landmarktaxservices comes with a two-page statement detailing the calculation of the funds sent. The first page serves as a reconciliation, displaying the agency billing for services and any deductions made.