FAQs

  • What is the benefit of working through an Umbrella Company?

As a contractor you can offset certain work related expenses if you expect to be on site for less than 24 months.  The main ones are travel, accommodation, and subsistence.  The amount of expense that you have incurred in carrying out your duties will be paid free of PAYE & NI.  This means that your take home pay is increased because you are paying less Tax and NI.

It is important to remember that unlike when you are employed we do not reimburse you for those expenses, we simply process them according to the HMRC guidelines for temporary places of work.

For a more detailed breakdown of what you can claim, see our Expenses Policy or talk to your Personal Account Manager.

  • How often should I submit my expenses?

You should send your expenses form to us the same frequency as we pay you.  So, if you are weekly paid send them weekly, and if you are monthly paid send them monthly.

The deadline for submitting your expenses is 2 working days before your payment is due.  So, if we pay you on a Friday you need to get your expenses to us by 5pm on the Tuesday to ensure they are checked ready to be offset.  If we pay you on a Tuesday we need them by 5pm on the Thursday etc.

Expenses are offset against your earnings, and can only be offset as far as National Minimum Wage, therefore, if you have a large amount outstanding  when you leave we will have nothing to offset them against, and we will be unable to offset those remaining.  You are not really losing out because we will have offset as much as we are allowed to by HMRC rules.  If you can keep on top of sending your claim forms in on time, this will mean we can offset as much as we can every week for you.

If in any week the amount of expenses exceeds the amount we are able to offset taking into account NMW at that time, we will offset as much as we can and carry the remaining claim forward to the following week.

  • How do I submit my expenses?

You should upload your expense claim onto the online portal weekly.  Expenses are offset against your earnings, and can only be offset as far as National Minimum Wage, therefore, if you have a large amount outstanding  when you leave we will have nothing to offset them against, and we will be unable to offset those remaining.  You are not really losing out because we will have offset as much as we are allowed to by HMRC rules.  If you can keep on top of sending your claim forms in on time, this will mean we can offset as much as we can every week for you. 

If in any week the amount of expenses exceeds the amount we are able to offset taking into account NMW at that time, we will offset as much as we can and carry the remaining claim forward to the following week.

  • How do I know if you have received my expenses?

We will let you know by SMS Text messages whether we have received your expenses.  If they haven’t been received in time to be processed, then we will carry them forward to the following week.

  • I have no expenses to claim.  How will this help me?

If you have no or very low expenses to claim then an Umbrella Company probably isn’t right for you.  As a general indication, you need to have around £50 per week of expenses to see a financial benefit from using our service.  If you don’t have this amount of expenses, talk to you agency about being paid PAYE.

  • Am I entitled to holiday pay?

Yes.  Part of the rate that your agency pays you, is holiday pay.  There are two ways that we can pay the holiday pay to you, please ensure that you complete the holiday preferences form and return to us.

The options are that your entitlement is paid to you with your regular payment.  This is done as a loan arrangement.  We loan you the amount that should be deducted, and then when you are on holiday the amount that we pay to you settles the loan.  This is the way that the majority of our Contractors prefer, and the way we will assume you wish your holiday pay to be managed unless you instruct us in writing that you wish to use the Holiday Fund method.

A Holiday Fund can be set up for you, and we can either take the amount of your basic salary which equates to Statutory holiday pay, or a fixed amount each payment which you can specify, and save it in your Holiday Fund.  Where this is in operation, the fund is displayed on your payslip, and when you wish to take some of the fund, you simply need to let us know how much to pay you and on what date.  To use this method, please confirm in writing, stating whether you would like us to retain the standard amount or a fixed amount.

  • What rates will I be paid at?

The Ltd company rate that your agency will have quoted you will include Employers NI, and holiday pay.  The Employers NI proportion will be deducted before we make payments to you.  When we have received details from your agency of the rates applicable to your contract, we will send you an Assignment Schedule which will specify the rates agreed with the agency.

  • How do I check that the agency have paid the correct amount?

Simplify will send you a Remittance Advice for every payment with your wage slip.  That will clearly show how many hours, and at which rate the agency have paid you for.

  • My Contract is Temp to Perm.  Can I still use an Umbrella Company?

You may still use an Umbrella Company, however you are not eligible to offset your expenses.  The reason for this is that the expenses can only be offset at a temporary place of work.  If, from the outset, it is intended that the role will ultimately become permanent, then the site can not be classed as temporary.

  • My Contract has been extended and I now know that I will be onsite for 2 years.  What do I need to do?

Expenses can only be claimed at temporary places of work.  This is defined as less than 24 months, and at the point where you have been on site for 24 months (irrespective of whether it was through Simplify, or another Umbrella Company) you can no longer claim expenses.  If you have worked on site for a year, and you receive a contract extension for 18 months, then at that point you are aware that the assignment will last longer than 24 months, so cannot continue to offset expenses.

  • When will my wages be paid in to my bank account?

We run a payroll every day and will transfer the funds into your bank on the same day we receive the funds.  We use the Faster Payments Scheme which means the funds arrive in your bank the same day.  Because we release the funds the same day that we receive them, they will arrive in your bank during the day, and not overnight.  There is no need to worry if you check you bank on the way to work on the day they are due, as they won’t be processed until we are open.  Feel free to call us on 01332 595959 if they are not showing in your account by 4pm on the day they are due.

If your bank doesn’t accept Faster Payments, the money will be sent by BACS and arrive in your bank 2 working days later.

  • If I haven’t worked during the week do I need to let you know?

You don’t need to let us know, but when we receive details of the payments due from the agency if there is no payment due for you that week, we will text you and let you know.  If that is correct then you don’t need to take any action, if it’s not then get in touch with us and your agency asap.

  • I need my employer to complete some forms for my Council Tax, provide proof of earnings etc, do I send them to Simplify or my agency?

Simplify employs you and will be happy to complete any such requests for you.  Either forward the forms to us, or provide our contact details to the 3rd party.

  • I am currently paying my Student Loan.  Do I need to let Simplify know?

If you send us a P45 that will tell us, but if you fill out a P46 you should tick the Student Loan box on the form.  The Student Loan Company will pick up that you now work for us when we pay you for the first time, and even if you haven’t let us know, we will receive instructions to deduct the loan very soon after we have paid you for the first time!

  • I currently have a pension which I make regular payment into.  Can I continue to do this via Simplify?

Yes.  You just need to let us know the details of how much to pay, how often, and the bank account details for your pension provider.  Please speak to your Account Manager about this.

  • Can I offset Childcare Costs?

Simplify uses Busy Bees Childcare Vouchers, which are accepted nationwide and can be used for any Ofsted Registered Childcare Provider.  Working Parents can save up to £933 per year.  For more details speak to your Account Manager.

  • I have outstanding Attachment of Earning Orders, do I need to pay them whilst I am working through an Umbrella Company?

Simplify employs you and is obliged to comply with any requests for information about you from certain organisations such as the CSA.  We have to make deductions from your wages when instructed by such organisations to do so.

  • Will you pass my details on to any other organisations?

No.  We respect your privacy and will not pass details to any other companies, except where we are obliged to provide information to certain government departments, HMRC or HM Court Service.

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TESTIMONIALS
  •       Simplify does what it says. Thank you.

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  •       I have nothing to complain about, my phone calls are always answered politely... If I know of anyone who needs to change I would recommend Simplify.

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  •       Becoming a contractor can be confusing but the team at Simplify Business made the whole process easy. They take away any worries about tax and NI by answering any queries you might have in an easy to understand way. Any problems with payment are dealt with pro-actively and Simplify go the extra mile to ensure you get paid on time. All in all Simplify Business provide a professional and friendly service & I have no hesitation in recommending them to other contractors."

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Tel: 01332 595959
Fax: 01332 650959

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Simplify Business Ltd
St. Peters House,
Mansfield Road,
Derby,
DE1 3TP