Frequently Asked Questions

An umbrella payroll service is a method of payment for contractors and freelancers. Instead of managing your own limited company, you become an employee of the umbrella company, receiving payments after taxes and deductions.

This depends on a variety of factors. The assignment rate, IR35 status of the assignment and duration of the contract will all impact on this decision. 

An umbrella company may be better if you are new to contracting and intend to be contracting for a short period of time, or your contract is inside IR35.

New Brolly on the Block stands out for its commitment to self-regulation, putting customer service at our core. We prioritise timely payments, excellent customer service, and transparency, even without certain industry accreditations.

We set ourselves apart through our emphasis on self-regulation and customer service. We understand the frustrations of late payments, poor customer service, and the instability of some umbrella companies, and we strive to provide a reliable and transparent alternative.

No, we are not accredited by Professional Passport or FCSA. However, we are dedicated to self-regulation, ensuring high standards of compliance and customer service in the absence of these specific accreditations.

At New Brolly on the Block, we take pride in our commitment to timely payments. Our streamlined processes and efficient payroll systems ensure that you receive your payments promptly and without delays.

No, transparency is a key principle for us. There are no hidden fees or charges. We believe in providing a clear and straightforward payment structure for our contractors.

Joining New Brolly on the Block is easy! Simply get in touch with our team through our website or contact details. We'll guide you through the on boarding process, making it a smooth transition to our umbrella payroll service.

 Absolutely! In fact, we encourage it. If you refer a friend or colleague to New Brolly on the Block and they join our umbrella payroll service,  we will award you with a £50 Amazon Voucher*

Compliance is at the heart of our operations. We ensure that all tax matters are handled accurately and in accordance with the relevant regulations. Our team stays updated on tax legislation to provide you with a compliant and worry-free payroll service.

•  Self-Regulation Commitment: New Brolly on the Block takes pride in its commitment to self-regulation. While not accredited by Professional Passport or FCSA, we prioritise compliance, transparency, and ethical practices to ensure the highest standards in the absence of specific accreditations.
• Compliance at the Core: Compliance is not just a checkbox for us; it's woven into the fabric of our operations. We adhere to industry regulations and stay updated on any changes to provide you with a reliable and compliant umbrella payroll service.
• Customer Service Excellence: Tired of dealing with poor customer service? NBOTB is dedicated to providing exceptional customer service. Our team is responsive, knowledgeable, and ready to assist you with any queries or concerns.
• Timely Payments: Say goodbye to the frustration of late payments. NBOTB ensures that your payments are processed promptly and efficiently, allowing you to focus on your work without worrying about financial delays.
• Transparency in Pricing: We believe in transparency. There are no hidden fees or charges at NBOTB. Our payment structures are clear, ensuring that you understand and have visibility into your financial arrangements with us.
• Ease of On boarding: Joining NBOTB is a straightforward process. Our on boarding procedures are designed to be efficient and user-friendly, making the transition to our umbrella payroll service seamless for contractors.
• Incentives for Referrals: Spread the word about NBOTB, Refer a friend or colleague, and both of you could benefit from choosing NBOTB.
• Forward-Thinking Approach: We are forward-thinking in our approach to payroll services. Our commitment to innovation ensures that you receive a service that meets the demands of the contemporary work environment.

Our customer support team is here to assist you with any challenges or queries you may have. Whether it's payment-related concerns or general inquiries, our team is dedicated to providing timely and helpful support.

Using a compliant umbrella company will mean that you are an employee and therefore there will be minimal administration. Simply fill in your timesheet online and the umbrella company will do all of the rest.

When employed by an umbrella company, your payslip has complete transparency and therefore may look different and contain more detail than you are used to.  But it should ALWAYS account for ALL funds you have been paid during that pay period.

In brief,  IR35 is a set of rules brought in to target tax avoidance in the UK contract market. The idea is to distinguish a 'disguised employee' from that of a 'true contractor'.  

Somebody who is deemed as 'inside IR35' would be considered to be working more like an employee vs that of a true contractor (outside of IR35).

Inside IR35:
Employee-Like Status: When a contractor or freelancer is deemed to be "Inside IR35," it means, for tax purposes, their working arrangement is considered similar to that of a regular employee.

Tax Implications: Inside IR35 contractors are subject to PAYE (Pay As You Earn) tax and National Insurance Contributions (NICs) on their earnings for that assignment. This means that income tax and NICs are deducted at source, similar to regular employees.

Employment Benefits: Inside IR35 contractors are entitled to employment benefits, such as holiday pay, sick pay and continuous employment.

Less Tax Efficiency: Being Inside IR35 can result in a higher tax liability compared to working Outside IR35 because contractors don't receive the tax advantages associated with self-employment.

Outside IR35:
Self-Employment Status: When a contractor or freelancer is deemed to be "Outside IR35," it means that their working arrangement is recognised as genuinely self-employed.

Tax Responsibility: Contractors working Outside IR35 are responsible for managing their own taxes and NICs. They may pay themselves through a combination of salary and dividends if they operate through a limited company.

Tax Efficiency: Working Outside IR35 typically offers more tax efficiency, as contractors can take advantage of tax allowances and deductions that employees cannot.

No Employment Benefits: Contractors Outside IR35 do not receive employment benefits like sick pay or holiday pay unless they arrange these benefits separately.

When working via an umbrella company you are engaged under a Contract of Employment with NBOTB and once signed are employed by us which entitles you to standard employee benefits.

Disguised employment, refers to a situation where a worker is treated as a contractor or freelancer, but their actual working arrangement is more akin to that of a regular employee. This can be a concern because it may result in tax avoidance and the evasion of certain employment rights and benefits.

The key characteristics of disguised employment often include:

Control: The client exerts a high level of control over the worker, dictating how, when, and where the work is performed.

Exclusivity: The worker may be required to work exclusively for one client, which is more typical of an employment relationship than a contractor arrangement.

Integration: The worker is integrated into the client's workforce, often working alongside permanent employees and performing similar tasks.

Mutuality of Obligation: There is an expectation of ongoing work and payment, creating a mutual obligation between the parties, which is a hallmark of an employment relationship.

Lack of Business Risk: The worker does not bear significant financial or business risks, such as investing in their own equipment or marketing their services to multiple clients.

No Right to Substitution: The worker may not have the right to send a substitute to perform the work, which is a common characteristic of self-employment.

Benefits and Perks: The worker does not receive the typical benefits and perks of employment, such as sick pay, holiday pay, or pension contributions.

No, you can choose any umbrella company that is compliant, however your agency may recommend a list of umbrella companies referred to as a preferred supplier list (PSL), this means the agency have a good relationship with that umbrella company or would imply they are compliant and reliable in handling your payroll.

When you are employed by an umbrella company such as NBOTB,  the margin is the amount we retain from the invoices we raise for your work. This is a fixed amount per week or month depending on your pay frequency. 

A "fee payer" is the entity responsible for determining and deducting income tax and National Insurance Contributions (NICs) from payments made to a contractor when the contractor is deemed to be inside IR35.

An IR35 review is important because it:

1. Ensures correct tax payments
2. Helps avoid penalties and legal issues
3. Ensures compliance with tax and employment laws
4. Reduces disputes and investigations

5. Aids financial planning for contractors
6. Clarifies client responsibilities
7. Establishes clear contract terms
8. Determines tax responsibilities for subcontractors
9. Provides an audit trail for future reference

In short, it helps everyone follow the rules, avoid problems, and manage their finances properly.

We have a weekly fee (Margin) of just £25.  This is deducted prior to statutory deductions.

Have more questions?  Feel free to reach out to us directly at info@newbrollyontheblock.co.uk for personalised assistance and information.