Frequently Asked Questions

An umbrella company is a UK employment vehicle that acts as the employer of record for temporary workers, contractors, and agency staff.

Working for an umbrella company means you get most of the benefits of self-employment without the extra hassle.
As an umbrella company, True North Umbrella is an organisation that employs temporary workers and enables them to carry out a number of short-term contracts for agencies and end-clients.
For a weekly charge of £23 we will take care of your payroll and other administration, leaving you with more time to concentrate on the work that really matters.
Once you’ve signed up you effectively become an employee of True North Umbrella. You will have an employment contract and benefit from all of the same employment rights as other permanent employees. You will be able to carry out multiple short-term contracts with less overall risk.
At True North Umbrella we provide our employees with a number of important services, including:

• Collecting payments from agencies on your behalf
• Helping you claim client billable expenses
• Processing your payslip and making sure you get paid on time
• Keeping you compliant with the latest tax regulation updates and HMRC

Using an umbrella company gives contractors the flexibility of independent assignments with the statutory rights, continuity, and compliance of PAYE employment.

We take care of all the necessary financial administration so you can concentrate on what's really important. All you need to do each week is submit your hours and we'll make sure you receive everything that you're entitled to.

True North Umbrella provides best value and compliant umbrella solutions to candidates who want the flexibility of contracting plus all the rights of being employed. It's easy and safe under our umbrella.

At True North Umbrella we make sure that our employees (contractors employed by True North Umbrella) are fully compliant at every stage of the process. We work within the tax system rules, helping you claim all of the allowable expenses that you’re entitled to.

• Fixed margin, no hidden fees: competitive £23/week flat margin.
• Simple, fast registration process.
• First-class customer service with a dedicated point of contact.
• Compliance as standard: FCSA and Professional Passport compliance standards.
• Flexible workplace pension scheme through NOW: Pensions.
• Highly-rated rewards scheme.
• Same day payments with up to 5 payrolls a day, paid by 12pm Friday.

An umbrella company is ideal for contracts inside IR35 or contractors who want zero administrative burden, whereas a Personal Service Company (PSC) suits long-term contracts outside IR35.

If you’re new to contracting then you have to choose a contractor option that's best for you.

There are a number of things to consider when making this choice. Every contractor in every industry has different needs and circumstances. Key considerations include:

• Are you happy to spend hours each month on your financial admin and tax returns?
• Will your assignment fall inside IR35 legislation? (If inside IR35, an umbrella company is typically the recommended and compliant solution).
• Will you be contracting for more than 12 months?
• Do you want the legal responsibilities of being a Company Director?
• Do you earn more than £15 per hour?

Your take-home pay depends on your agreed contract rate, hours worked, tax code, and allowable client-billable expenses.

• The amount of weekly or monthly take home pay you receive depends on a few key factors like your hourly or daily rate, how often you work, tax deductions, and any client billable expenses you can claim.
• As an umbrella employee you may be able to claim allowable expenses while working on a temporary site in line with HMRC rules. The range of legitimate expenses can include things like travel and meal costs while traveling between locations, as well as hotel bills for when you are working away.

True North Umbrella retains a transparent flat weekly margin of £23 per paid week.

• There is no charge for joining True North Umbrella, and no cancellation or exit fee.
• We only retain a flat weekly margin of £23 if you are paid. If you do not work or submit timesheets, no margin is charged.

Under UK auto-enrolment legislation, eligible contractors are automatically enrolled into a workplace pension after 12 weeks of continuous employment.

• Current legislation requires employers to enrol their employees into a workplace pension. We comply with the law by enrolling our employees into a qualifying pension scheme with Options Workplace Pension Trust after 12 weeks of employment, administered by NOW: Pensions.
• NOW: Pensions will be in touch with you once you have been enrolled in the scheme they administer, and you will have 24/7 online access to your pension information via their portal.