How do Umbrella's operate?

Umbrella Companies are set up in the UK to assist freelance or independent contractors who would rather avoid the hassle of having to run their own limited company. Most umbrella’s operate by paying contractor their earnings and deducting Tax and National Insurance contributions for them. This is essentially a PAYE method, but crucially umbrella companies offer contractors to claim legitimate business expenses.

Professional contractors, freelancers or temporary workers who wish to use an umbrella firstly need to sign up to their services. Weekly or monthly fees are payable and are usually deducted from earnings – thus minimising fees when not working. JBT only charge fees when you are working and unlike other umbrella’s because we don’t charge a weekly or monthly fee you don’t pay extra if starting work mid week or month.

Money laundering laws require all umbrella companies to prove the identity of their contractors or workers, so for this reason JBT invite applicants to come in for an appointment when using our umbrella. This also provides you with a chance to have your questions answered in person.

Once signed up to any umbrella service, you usually need to send in signed timesheets for the work you have completed for your client to the umbrella company, along with your expense claim forms. Some umbrella’s might charge additional fees for processing expenses or may process expenses with a delay. At JBT we pay your earnings and process your expenses at the same time, all you need to do is send them in.

Because most umbrella’s offer very basic services or cannot guarantee your pay you could be left without pay if the worst happens. Umbrella’s offer various services and if getting paid on time is one of them, JBT is for you. Unlike most umbrella’s we pay you on a fixed schedule every month, this means that if your client or agency is late with payments or unable to pay for whatever reason we will still pay you! Great news when you have rent that’s due each month, don’t wait to be paid ever again.