A Guide to Your Pay: How it works when you're paid through an Umbrella Company

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How we work with you and your agency

Register

Contract

Invoice

You register with our Employment Umbrella and become an employee of Danbro 

We’re sent the contract for your services for a specified number of hours at the rate you agreed with your agency or direct client

Each week or month (depending on your contract) we send an  invoice to your agency or direct client for the work you’ve done

Your Deductions

Company Deductions

Payment

We make the statutory deductions relating to your employment with us (Employer's National Insurance and Apprenticeship Levy) and pay them directly to HMRC. 

We retain our margin and deduct any contributions you're opted into. These are all broken down in the 'Company Deductions' section (pg 2)

Your agency or direct client forwards the funds to us, you'll see this on your reconciliation sheet (pg 2) as 'Contracted Rate'

We deduct Employee's National Insurance and Income Tax and pay them directly to HMRC, you'll see these on your payslip (pg 1) in the 'Deductions' section

Take-home Pay

We pay you your take-home pay. This is shown in the 'Paid' section (pg 1)

What happens when you get paid?

Every time we pay you, we send you a text message to let you know, and at the same time we put a payslip on your portal. It's a 2 page document - page 2 is a reconciliation sheet and page 1 is your payslip.


It’s really important to understand what these pages tell you, so the following is designed to help explain how your pay is worked out.


We start on page 2 , your reconciliation sheet, as this shows the income we receive from your agency for the work you have done. There are separate breakdowns for company deductions and expenses.


What remains after these deductions is yours. Your gross pay is shown at the end of the Pay Summary section of your reconciliation sheet and this is carried over to page 1, your payslip, as illustrated in the sections below.


Understanding your Payslip

Payslip

PAYE Reference

Period Ending

Payroll ID

Name

NINO

12345

12/04/2020

Alex Contractor

TN123456C

475YB56891

This is your payslip

Payment Breakdown

Deductions

This is Employee's National Insurance

Gross Pay

£720.81

Income Tax

   £113.44

This is your holiday pay - we advance it to you every time you're paid

   £87.00

Holiday Pay Advance

National Insurance

   £74.97

This is your gross pay which was calculated on your reconciliation sheet (pg 2) shown above

Total Gross Pay

£807.81

Total Deductions

   £188.41

Payments This Period

Net Pay

Date

Amount

Net Pay

£619.40

Expenses

£0

10/04/2020

If we pay you more than once in a pay period, all the payments will be listed here and the cumulative value of your pay, for the whole period, will be shown

£619.40

£619.40

Total Net Pay This Period

This is your take-home pay

Paid

£619.40

Year To Date

This Period

Hours

Gross Pay

Tax Paid

Tax Code

Pay Method

Tax Period

37.5

£807.81

1250L

Week 01/2020

FASTER PAY

£113.44

Your Tax code is set by HMRC, you can watch our video below to find out more about how they work

Understanding your Tax Code

Watch our video below for more information on what the letters in your tax code mean.

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