What is umbrella payroll?
Through the umbrella payment method, Bar2 will employ contractors directly and act as a connector between the agency/end client and the contractor.
As a contractor’s employer, we’ll take control of working out any necessary deductions for a contractor and will submit these to HMRC. This structure facilitates a streamlined approach to payroll processing, tax obligations, and administrative tasks.
Unlike traditional employment or other contracting methods, the umbrella payment method provides flexible working for contractors looking to work with multiple agencies, whilst offering contractors a solution for managing finances and a simplified and hassle-free payroll experience.
Have a question?
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How it works
Step 1: You are placed on a new contract through an agency or end client
Step 2: If Umbrella payroll is your preferred payment method, we'll discuss this as an option with your agency and then begin registering you with one of our Onboarding Specialists. Once registered, we then become your employer.
Step 3: You put in a great shift, we receive your timesheet detailing your hours from your agency or end-client, then calculate your pay and subtract any Pay As You Earn and National Insurance deductions
Step 4: We invoice your agency or end client
Step 5: You receive your payslip and are paid weekly to your nominated bank account. You’re notified of your payments by SMS.
A contract is signed between the umbrella company and the agency or end client on behalf of the contractor being paid through the umbrella payment method.
Benefits of Umbrella payroll
Choosing an umbrella payment method comes with a host of advantages for contractors:
Continuous employment and easy access
No more endless P45’s and registration forms! By enrolling through an umbrella scheme, you can eliminate the hassle of switching employer with each new contract as your employment status remains employed through us, regardless of the contract you are working on.
Guaranteed peace of mind
We take ownership of the payroll and compliance for your function within the supply chain. We ensure that all the deductions for employment taxes, personal taxes, pension contributions and fees are managed our end …leaving you without the stress of unexpected tax bills.
Easy and simple processes
Not only will we cover all aspects of your payroll, but the processes on your side are kept simple and hassle-free.
Employee benefits
As an ‘employee’ of an umbrella company, you have access to certain benefits that you wouldn’t have access to as a self-employed contractor.
Perks such as statutory sick pay, maternity pay, and paternity pay offer a sense of security for any personal circumstances that may occur whilst on the job.
Reduced admin
We handle all administrative tasks, including payroll processing, tax deductions, and invoicing, minimising the administrative workload for contractors.
Tax efficient payments
Umbrella payroll companies ensure that you’re paid in the most tax-efficient way, whilst ensuring compliance with tax regulations.
Flexibility
The umbrella payment method allows contractors to take on short-term assignments without the need for frequent job changes, providing stability and consistency.
Professional guidance
We offer professional support and guidance, keeping contractors informed about changes in tax laws and ensuring adherence to compliance standards.
Benefits of Bar2 Umbrella payroll
Through choosing to be paid through Bar2, you will receive a whole heap of fantastic perks such as:
- Multi-lingual team to offer you the support you need from start to finish
- Access to the MyDigitalAccounts online expenses and payslip portal and industry leading Expenses App (eligibility terms apply)
- Comprehensive 24-hour personal accident insurance to provide a weekly sum or capital sum if you are unable to work due to accidental injury, either inside or outside of work – providing you with peace of mind for you and your family
- No need to switch employer with each new contract. You can use Bar2 to manage your money no matter who you choose to work for; so no more re-registering, no more P45’s, no more emergency tax – and you will maintain your engagement status all year round.
- Text message confirmation as soon as you’re paid so you know exactly when you can access your money
- We use state-of-the-art technology to register our contractors one-time only
- We work in partnership with a leading accounts product to ensure you are always paid in a timely and accurate manner
- Access to our WhatsApp AI service in any language for quick and easy support
- No tie ins/hidden costs
- No headache of managing personal taxes and pension and no stress of unexpected tax bills as we handle all that for you! We will take care of all your administration; including calculation of your Tax and National Insurance contributions and payments to HMRC
- Umbrella company insurance support
- Continuous employment record
- After 12 weeks of continuous employment, you’ll be auto-enrolled into a workplace pension scheme with our pension provider, NEST.
- Employers Liability Insurance – protecting you against any claims relating to illness or injury caused by employer’s negligence.
- Professional Indemnity – protecting you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered.
Use our contractor portal to submit your expenses now