Myths and Reality of an Umbrella Company

There is a lot of information about umbrella companies available, some it out of date, and some of it incorrect. In this environment it’s often difficult to tell which facts you can trust, particularly if you’re new to supply teaching. Here we take a number of the most common myths and misconceptions and explain what’s really going on.

 

Myth: I am self-employed.

Reality: We can see why you’d think that. However, when you register with an umbrella company you become a permanent employee. This is very much to your advantage as it entitles you to benefits such as:

  • Statutory employment rights benefits such as sick pay, maternity pay, and paternity pay
  • Access to a workplace pension
  • Holiday Pay
  • Guaranteed pay for the work you have completed
  • Efficient use of your personal tax allowance as you can have all your assignments paid via one tax code.
  • Having one employer assists with your personal credit score
  • No need to complete a self-assessment form at the end of the tax year

 

Myth: We charge you a fee for calculating your tax and NI.

Reality: We charge the agency for your time at the rate you agreed with them, we make a small profit and cover the costs of employing you and then we pay you as our employee.

 

Myth: The only difference between umbrella companies is “the charges”.

Reality: Of course you need to consider the margin the umbrella company makes in billing your agency for your work. However, you will generally find that most umbrella companies make similar margins, and small differences will have little effect on your pay. Leaving aside their margin, all umbrella companies are certainly not equal. If you’re looking for a new umbrella company you may also wish to consider:

  • Are they members of FCSA? – We strongly recommend that your chosen umbrella company be a full member of the Freelancers and Contractors Services Association. This is the best way to be sure they’re completely compliant with all relevant legislation, which ensures you won’t be left at risk or out of pocket.
  • Can they work with all your agencies? – One of the advantages of umbrella employment is that you can work for several teaching agencies and still only have one employer. This simplifies your tax position and can improve your credit score.
  • How easy are they to work with? – Do they offer unlimited support via phone and email? Will you have a dedicated point of contact? Can you register online? Will you have to post or email documents to them? You’re already busy so little touches like this can make a big difference.

 

To find out more about joining Orange Genie Education, please call 01296 468 483 or email education@orangegenie.com

Why Orange Genie Education?

We employ and pay thousands of supply teachers and education support staff every year. Our employment portfolio stretches over 10 years in the umbrella industry making Orange Genie Education one of the most trusted umbrella brands. With this in mind, there’s no wonder we have long lasting relationships with hundreds of recruitment agencies all over the UK. Upon joining Orange Genie Education you become an employee of ours benefiting from:

Single employer for all assignments

  • One payment for all different agency assignments completed in a week
  • Simplified and efficient taxation from single tax code
  • Guaranteed pay for the work completed
  • Continuous employment rights
  • Maternity and Paternity pay
  • Sick pay
  • Access to a workplace pension
  • Statutory rights
  • Improved personal credit references and rating
  • Save over £700 with Orange Genie Rewards

Reassurance our supply teachers are employed by an FCSA member that protects and supports contractors. Our aspiration is to improve the lives and wellbeing of supply teachers and education support staff.

Get started HERE with OrangeGenie Education and get paid on time every time >>

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