What is an umbrella company?

OrangeGenie is an umbrella company that allows freelance contractors the opportunity to secure a contract without the need for setting up a limited company. Many contractors, including first-timers don't want the hassle and cost associated with running their own limited company.

Why do I need an umbrella company?

There are five very sound reasons:

• To avoid employment agency regulations including possible PAYE complications.
• Your clients avoid the legal burden of employing a permanent member of staff.
• Your clients have no hidden employment costs (pensions, holiday pay and other long-term overheads).
• Your clients have no responsibility to operate PAYE on your consultancy fees. This is extremely important since, if you are a sole trader, the Inspector of Taxes could dispute your status and, in certain circumstances, look to your client for income tax and national insurance on your fees long after employment has ceased.
• Being employed by OrangeGenie is indisputable proof that you are not employed by your client.

What are the Advantages of using an Umbrella Company?

In today’s complex contracting environment OrangeGenie provides a convenient, stress free solution which is as tax efficient as any structure that can be used. You are covered by all the workplace insurances you need to guard against unforeseen events. It is a safe option.

How does OrangeGenie work?

It’s really quite simple. You sign up as an employee of OrangeGenie. We sign a contract with the agency (or end client) for each of your assignments. Once an assignment starts, you submit your approved timesheets and expense claims to us. We invoice the client, who then pays us. Once funds are received we deduct the appropriate amounts for tax and national insurance and then make payment directly to your bank account.

IR35 Compliance - What is IR35?

IR35 is Government legislation, introduced by Finance Act 2000, with the aim of stopping contractors avoiding tax that really they should be paying. At that point in time employees would quit their full time job on a Friday – returning the following Monday as a ‘contractor’ to do exactly the same job but paying far less tax! It was great for the contractors and legal at the time, but the Inland Revenue felt it was an unfair way of avoiding tax so changed the law, for all contractors, by introducing IR35. The implications of this meant that contractors had to pay a greater amount of tax & NIC than previously.

Am I working inside or outside IR35?

All contractors that use our umbrella service are deemed to be working within the IR35 Regulations.

Do you pay dividends?

No. Dividends are not payable under a PAYE umbrella solution.

Am I self-employed?

No. You are an employee of OrangeGenie.

How much does your scheme cost?

Our fees are fixed, and are a legitimate deduction against PAYE and NI. The net cost to a weekly paid employee is £14.82. The net cost to a monthly paid employee is £47.49. This assumes a tax rate of 22%.

Is there a set-up charge or any other payments I need to know about?

No. There are no hidden extras – you only pay OrangeGenie a fee as your timesheets are processed. There are no set-up fees, no close down fees or minimum tie-ins. We are here as a solution for you to use as often as you require. If you do not work for a week, there is no charge.

What do I need to do to register?

You can simply complete our online application form, or, contact our registrations team who will be able to sign you up in a matter of minutes.

Do I need to send you my P45?

Until we receive your P45, you will be taxed on a "WEEK 1" tax code.

I don’t have a current P45. What should I do?

If you do not have a P45, we will send you a form P46, which you will need to complete and return to us. The Inland Revenue will then advise us of your correct code.

Do you have an Online Portal?

Yes, you will be given login details once you have signed your offer letter. It allows you to enter your timesheet details and expense claims. You can also track all current transactions, check historic data, request CHAPS payments and holiday pay , and set up alerts for your mobile phone.

What do I need to do with my timesheet?

You need to send your approved timesheet to your agency, unless your agency requests a different arrangement.

When do I send you my timesheet?

As each agency has different payment conditions, YOU MUST CHECK the requirements with your agency.

How do I know you’ve received my timesheet?

Once you have submitted your hours on the online portal you will be able to track the progress of your payment through the portal.

Will you pay my expenses?

We refund to you all authorised expenses actually and reasonably incurred in the performance of your duties in accordance with our current expenses policies and procedures.

How do I claim for the travel and subsistence expenses?

Please use our online portal to complete and submit your expense claim. You need to submit your receipts to us by post together with a signed cover sheet. OrangeGenie will then process your expenses along with your timesheet every week/month.

Will I be paid weekly or monthly?

Your contract will say if you are to be paid weekly or monthly. We make payments daily, so we pay you as often as we receive identified funds from your agency.

Can I get same day transfers?

If you use our standard service same day transfers (CHAPS payments), are available, but the bank will charge for this service. The cost is £20 per transfer.

How do I know that a payment has been made to me?

Once we have processed your payment, your online portal will be updated. We will send you a pay slip each time you are paid, which will detail all the deductions OrangeGenie made for NIC, income tax and our fee. The payslip will be sent to your chosen email account in PDF format.

What about my VAT, PAYE and NI liabilities?

With OrangeGenie you no longer need to worry about any of these things. We take care of all your VAT, PAYE and NI liabilities. PAYE and NI are deducted and paid to the Inland Revenue by us. You do not need to do a thing.

Why do I pay Employers National Insurance Contributions?

It is a legal requirement that Employers National Insurance is paid. As a contractor your rate of pay should allow for this deduction.

Why am I on an emergency tax code?

Have you sent us a current P45? If not, then you will automatically be taxed on a Week 1 code (also known as an ‘emergency code’). In this situation you should request a P46 which we can send to you. Alternatively, it may also be the code that has been advised to us by the Inland Revenue, or may be the code stated on your P45 (which we therefore have to apply).

Do you issue me with a P60?

Yes. If you are our employee at the end of the tax year, you will receive a P60.

Do I need to complete a Self-Assessment?

There are Inland Revenue guidelines relating to this matter. Please consult the following webpage for more details: www.ir.gov.uk/sa/guidelines.htm . Where a return is required we are happy to provide this service.

How do you calculate holiday payments?

Your holiday entitlement is 24 days per annum and accrues at the rate of 2 days per month. You may take leave (paid, to the extent of your accrued paid leave entitlement, or unpaid) at any time, subject only to the requirements of any current Assignment. Payment of your accrued paid leave entitlement may be requested at any time and paid with the next payment due to you.

Can I claim holiday pay?

Yes, please use the online portal to request your holiday pay.

Am I covered by OrangeGenie’s Employment Insurances?

Yes, you are covered by Employers Liability Insurance and Public Liability Insurance.

Can you provide Professional Indemnity Insurance cover?

Yes. This insurance cover is provided free of charge, subject to exclusions.

Will you write me a reference letter, for a mortgage, for example?

As your employer, OrangeGenie will be happy to provide reference letters on request.

Does OrangeGenie provide any other benefits to Umbrella employees?

Yes. Our sister company, Genie Services provides a range of products and services designed specifically for contractors. These include Mortgages, Loans, Pensions, Car Leasing, Credit Cards, Life Assurance, Health Insurance, Death in Service Insurance and so on.

What do I do when my contract ends?

We will support you in seeking your next assignment, the expectation is that we will have a long term relationship with you that will cover a number of assignments.

What if I decided to leave your employment?

If you have been unsuccessful in finding a new assignment and you decide to leave our employment, all you need to do is tell us. We will collect all outstanding funds and make a final payment to your bank account. You are able to join again at any time.

Do you issue me with a P45?

Yes. As we are your employer, we will issue you a P45 when requested by you on leaving our employment.

Can I refer a friend of mine to your services?

We'd be delighted to help out any of your friends who need an umbrella service. As a small thank you we offer a reward of £25 for every successful introduction you make.

Who do I talk to if I have any questions before or after I join?

Our phone lines are open between 8.00am to 6.30pm Monday to Friday and a voicemail service operates outside these times. Feel free to contact us whenever you want to with any questions you may have about our service.