Welcome to our umbrella service

When we contract with your agency you will have an agreed ‘assignment’ rate with them. This assignment rate isn’t your Gross pay rate - it’s a rate that includes all the costs of employing you, together with our margin. These costs will include the employment costs (employer’s National Insurance, Apprenticeship Levy and, where applicable, the employer’s auto-enrolment pension contributions) and your holiday pay.

The remainder is your Gross Pay (which consists of your hourly rate at NMW/NLW plus a profit share bonus) on which we then must deduct PAYE, employee’s National Insurance and where applicable, the employee auto-enrolment pension contributions. The balance is paid to you as your net pay.

All taxes, National Insurance contributions and Apprenticeship Levy costs are reported and paid to HMRC; all pension contributions are reported and paid into your account with our pensions auto-enrolment provider, NOW:Pensions.

Moving from your PSC/LTD company?

Currently, your LTD company is your employer and has the responsibility of paying employer costs on the salary paid to you by your company, although in reality many LTD contractors pay themselves a salary below the threshold which doesn’t attract Employer National Insurance (or Employee National Insurance and PAYE). When operating through an umbrella company, responsibility for paying the employment costs still falls to the employer – in this case the umbrella company.‍
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Moving from perm/direct PAYE?

If you are directly paid by your agency or client at the moment, the employment costs are calculated and paid in the background, prior to your personal PAYE/National Insurance calculations. Your client or agency will pay these costs directly to HMRC. When using an umbrella company, your assignment rate is inclusive of the employer costs, which we retain and pay on instead.

TJW are one of a handful of umbrella companies that can support you paying via salary sacrifice into your personal pension. We can engage with most providers, however please check with us in advance for clarification on this and how it would work. We will request the details for your personal pension once you have set up with us and will arrange the setup with your provider directly.
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Do I also get the employer saving on employer contribution?

We pass on all tax and NIC relief, including Employer NICs for salary sacrifice. You therefore receive the maximum possible benefit of making contributions into your personal pension via TJW.
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Please note that even if you have your own personal pension, you will still be auto-enrolled into our company pension.