Our service for Agencies
Rota Umbrella provides all the usual advantages of paying contractors and temporary staff through an umbrella company:
The Agency just pays the invoice for staff supplied by the Umbrella Company and the payment of workers with all the relevant administrative tasks is then taken care of:
- Employer of record
- Responsibility for Agency Workers Regulations
- Administration of paid Holiday Leave
- Enrolment in Workplace Pension scheme
- Processing of timesheets / payroll
- All payroll deductions dealt with
- PAYE Returns to HMRC under RTI
- Responsible for determining any non-taxable expenses
- Payment of staff same day.
However – and very significantly – our service will increase profit margin and / or income for Agency / Contractor. Our Mini-Umbrella companies are able to make legitimate savings on employer obligations unavailable to others.
We recognise that a change from direct employment of workers by Agencies to Umbrella Company use can involve a strain on cashflow…an agency may be relying on the effective credit provided by future VAT / PAYE payments whilst waiting for invoice settlement from clients. We can offer payment terms which mean that there is a neutral effect on your cash at bank from the switch.
Additionally though we have the capability to provide a unique solution to the problem caused by providing Supply Teachers to Independent Schools and other VAT Exempt organisations…the unregistered Mini-Umbrella Company.
Our Mini-Umbrella Companies are able to provide Supply Teachers and other staff without charging VAT. They operate like any other umbrella employer but they are not all VAT-registered and have no requirement to be so. This allows agencies to operate and temporary staff to work in a sector where previously it was not practical.
Paying staff through an Umbrella company can cause HMRC compliance concerns for Agencies. However this would not be the case if payment were made via one of ours:
- Fees paid to company which is not Contractor’s own Intermediary – not owner / director.
- Agencies are therefore certain of no obligation for PAYE under Off-Payroll Working Rules.
- IR35 / Managed Service Company regulations do not apply – PAYE operated by Employer.
- Intermediaries Reporting for Agencies does not apply because PAYE submission made.