As your employer, TJW will retain employment costs from the income that we receive from your agency.

We contract with your agency for an agreed ‘contract rate’. We then calculate and retain these Employment Costs (Employer’s National Insurance, Apprenticeship Levy and, where relevant, Employer’ Pension Contributions) from the contract income we receive.

The remainder of the contract income is available as your Gross Pay, on which we calculate and deduct PAYE, Employee’s National Insurance and, where relevant, Employee Pension Contributions. The balance is your net pay.

All PAYE, National Insurance Contributions and Apprenticeship Levy fees are reported and paid to HMRC; all Pension Contributions are paid to our pension 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.

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 contract rate is inclusive of the employer costs, which we retain and pay on instead.

In each holiday year your holiday entitlement will the statutory amount – currently 28 days (including bank holidays) – unless your agency informs us otherwise. Your holiday pay comes to us from your agency and is included in the rate we receive from your agency in the contract rate. You will have two options as to how we pay this to you:

Retained – by law we have to retain the holiday pay element of your pay into your holiday reserve to be paid to you when you take time off. We will reserve an amount for holiday pay equal to 12.07% of your Gross Pay (based on 5.6 weeks holiday per year; if you are entitled to more holiday this ratio will be adjusted to compensate). We will also reserve a small amount to allow for Employer Costs which are due when we come to pay your holiday pay. We will clearly state on each payslip you receive the total amount we have reserved for your holiday pay and Employer Costs.
You will need to request payment of your holiday by completing our online form. Holiday can only be claimed for time actually taken off.
If at the end of the holiday year the total amount of actual Employer Costs incurred is lower than the total amount reserved, we will pay to you the difference as salary, less any additional Employer Costs which may be due. When you leave our employment you will automatically be paid any remaining holiday pay we hold in reserve.
Paid in Advance – if you prefer, you can opt out of having holiday pay reserved and elect to have it paid upfront with each payment you receive. This means that you will receive payment in advance for the time that you actually take off as holiday and won’t be paid directly when you are not at work. The amount of holiday pay advance will be clearly shown on each payslip you receive. You can change your holiday pay preference by completing our online form.

We will usually make payment to you on the Friday following the week worked (i.e. a week in ‘arrears’), unless your agency payment terms are any different. If your agency is late in sending timesheet details to us, we will generally aim to make payment to you on the same day as funds are received from them.

You are entitled to Statutory Sick Pay, so if you are off work for 4 or more days you will need to obtain a doctor’s note and send that in to us. You can read more about the eligibility criteria here.

Yes. As an employee of TJW you will be enrolled into a government workplace pension scheme, operated by NOW:Pensions, as it is a legal requirement.

You will be enrolled after 12 weeks following your first payment from us, unless you choose to ‘opt in’ sooner. Details of how to do this will be sent to you by our pension provider soon after your first payment. The statutory percentages are 3% Employer and 5% Employee contributions payable on your qualifying earnings – you can choose to increase your Employee contributions should you wish to do so.

Can I opt out of the auto enrolment pension scheme?
You can opt out of the auto enrolment pension scheme only after you have been enrolled and your first contribution has been processed. We will notify NOW:Pensions of your enrolment at the beginning of the week following your first contribution. You will then receive an email from NOW:Pensions confirming your enrolment, which will also contain information on how to opt out should you wish to do so. If your opt out is completed within 30 days of your enrolment notice you will receive a full refund of all contributions made. Refunds cannot be made after this 30 day opt out period.

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.

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.

Tax relief on expenses are no longer automatically claimable and can only be processed if you are not under SDC (supervision, direction and control of your end client). For those that may qualify, we will have to run an assessment once you have started your assignment to confirm this.

Before this assessment takes place we would need to discuss with you different elements of your job and the manner in which you carry this out. This relates to who you have to report to, how work is allocated to you, and any fixed processes you may have to adhere to on the direction of the client, before we can send out the questionnaire to determine the likelihood of you being outside of the legislation. In general unless you have been taken on as the only one with your skillset (i.e. a consultative approach), people tend not to be able to claim.

After we are satisfied that that no SDC applies for this assignment we would require a director to sign off our questionnaire that we will email out to you.

Subject to the successful completion of our questionnaire, expenses such as travel and accommodation costs (staying away from home) are claimable for tax relief. Capital items such as laptops and phones are complicated to claim through an employment model like an umbrella company. However, where a genuine business cost such as this exists, we can support you to claim this on your end of year self-assessment or P87.

Please note, SDC in terms of how you complete your tasks is separate from your IR35 status and requires a separate check by us. So, you can be inside IR35 and not under SDC for expenses purposes. We also have to check against the 24 month rule – if your current or contract extension will take you past 24 months, or you have already been at this client site for 24 months or more, no tax relief expenses will be claimable.

No, reimbursed expenses must be billed by us to your agency, who will pay them to us when approved by the end-client.

We will still need copies of receipts or a claim form in order to pay these expenses free from tax and National Insurance. If we do not receive receipts or a claim form then any payments received as expenses must be paid as income and be subjected to tax and National Insurance.

HMRC will usually contact you if you are required to complete a self-assessment, but being employed by an umbrella company does not automatically mean that you need to complete a self-assessment. It is mandatory to complete a self-assessment if you receive a taxable income over £100,000 in a single tax year. You can find out more information here to check if this applies to you.
The information required to complete a self-assessment should you need to do so will be provided to you; either a P45 will be issued if you leave us during the tax year or a P60 if you are still employed with us at the end of the tax year (5th April).

Still operating a LTD company?
As a director/shareholder of your LTD company you will still need to complete a self-assessment which should include your employment income through your umbrella company as well as any salary or dividends from your company.

Yes – we provide comprehensive insurance cover for when you are on assignment. This includes £10M of Employer and Public/Products liability cover as well as £2M for Professional Indemnity. We do not cover any personal health insurance, however we can provide accident insurance, which covers you while you are at your workplace, as well as your journeys to and from your workplace, for a small weekly administration charge.

Most agencies will send your timesheets to us, however it is best to check with your current agency first.

You will not need to send invoices to us or the agency as these are dealt with by us.

If you have a Student or Post-Graduate Loan via the Student Loans Company you are likely to pay this back via your wages payments automatically through PAYE. How much you repay will depend on which ‘plan’ you are on. Each plan has a threshold for your weekly income. You will repay:

  • 9% of the amount you earn over the threshold for Plan 1, 2 or 4
  • 6% of the amount you earn over the threshold for the Post-Graduate Loan
  • 15% of the amount your earn over the threshold if you have Plan 1, 2 or 4 and a Post-Graduate Loan

You do not repay anything if your income is below the relevant plan threshold.

Unfortunately the Childcare Voucher scheme is no longer available to new starters. It has been replaced by the Tax Free Childcare Scheme solely operated by NS&I. As this new scheme removes any employer involvement we will be unable to advise you on this new scheme or assist you with registrations.

There was something a little bit unusual about the 2018/19 tax year – it contained 53 pay days, instead of the more normal 52. This could have a small effect on your pay, so we’d like to explain.

Your annual tax-free personal allowance is split into 52 equal amounts and one portion is given to you each week of the year. This is because a year usually has 52 weekly pay days. However, because a year actually has 52 full weeks plus an extra day or two, every so often it works out that there are 53 pay days in the same tax year.

When a 53rd pay day comes along, there’s no tax-free allowance left to use.

How will this affect me?
Thankfully, HMRC has a process in place to stop this impacting you too much. They added an extra chunk to your 2018/19 allowance, which is then deducted from your 2019/20 allowance. It’s designed to prevent a big drop in your take-home pay in Week 53.

For most people, it means you could have ended up slightly underpaying tax in 2018/19, and paying a bit more each week in 2019/20 to balance it out. There’s nothing you need to do – it’s all taken care of automatically.

Don’t forget – most people’s personal allowance increases at the start of the new tax year anyway, so you may well find that you still pay less tax than you paid last year overall.