Umbrella Companies Explained in 2mins | Jog on Jargon

Learn more about Umbrella Companies with our simple article: crch.co/2WEVRJg
An Umbrella Company employs the contractor and is responsible for all employment taxes and employment support.
In this episode of 'Jog on Jargon', Luke Young breaks down the concept of Umbrella Companies in two minutes.
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[@daaceAu]

So will I be paying 30% tax’s or still 20 since I have a Utr attached to my national insurance number

[@Ricky-tr2hd]

How the hell do I get rid of employment costs please? I never expected them.

[@salam7376]

Hi , how does your umbrella co. work for recruitment consultants employing temp / agency workers please ?

[@shafislam5622]

Morning, I just started as a bus driver through an agency under the umber scheme. I just received my first pay slip and I noticed that there was no deduction for tax and student finance. Should I be worried? I was told that I was not self employed.

[@IBWaxed]

Can you do a video breaking down the tax by umbrella company ? I think i am paying too much

[@lanceblack888]

What’s the difference between an agency and an umbrella company?

[@alexroper6255]

I’m a payee of agency I’ve been doing Work for uses an umbrella company I was not informed of this

[@laura19861]

Does this mean someone employed under an umbrella company still has their own taxes sorted? They’re just technically hired by a different company instead? That correct?

[@CountOnCrunch]

You're pretty much spot on. For clarity, here's how it would usually work: The umbrella company effectively works as an alternate employer who will deduct and account for taxes that an employee is due to suffer. So for the worker, taxes are sorted as the umbrella company should have treated them like an employee.

[@buddhababy2005]

Sorry - I'm not sure of the definitions you are using. As the worker, am I 'the contractor'?

[@CountOnCrunch]

Hi Tara, thanks for your question! Indeed, as the worker you would be deemed the contractor.