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How Does it Work?

What is the process of working through an Umbrella Company?

We realise you probably aren’t that interested in how umbrella companies work, as long as you get your money, correctly and on time. However, there are some differences that have a bearing on this and it is our job to tell you about them.

Your payment is initiated in one of two ways which is dependent on your client or agency’s procedures. Put simply, either your client/agency completes and submits your timesheet and expenses to us (your umbrella company) or it is your responsibility.

Below illustrates the processes between Umbrella Companies, Recruitment Agencies and the End Client in order to get paid each week or month. We thought it may be helpful to explain the procedures using two clear charts.

The first procedure:

  • The client signs your agency timesheet
  • You complete your timesheet and expenses claim using our online portal
  • MSL Forza validates your expenses claim and invoices your agency for the hours worked, together with any chargeable expenses
  • The agency verifies the invoice and makes payment to the umbrella company (MSL Forza)
  • On receipt of payment from the agency, we process any legitimate business expenses, deduct our fee, calculate and deduct the employer’s NIC and then calculate the tax and employee’s NIC
  • The net amount due to you is then paid directly into your chosen UK bank account
  • You then receive an SMS text message confirming that your payment has been made and that your payslip is ready for you to view ñ and print off if required ñ from our secure online portal.

The second procedure:

  • The client signs your agency timesheet
  • You send your signed timesheet and approved expenses claim, if applicable, to your agency
  • The agency validates your claim/s and then invoices the client
  • The client authorises the invoice and makes payment to the agency
  • The agency pays the umbrella company (MSL Forza)
  • On receipt of payment from the agency, we process any legitimate business expenses, deduct our fee, calculate and deduct the employer’s NIC and then calculate the tax and employee’s NIC
  • The net amount due to you is then paid directly into your chosen UK bank account
  • You then receive an SMS text message confirming that your payment has been made and that your payslip is ready for you to view ñ and print off if required ñ from our secure online portal.

Note:

It is important that you process both your timesheet and expenses at the same time and on a regular basis to ensure you receive the maximum tax benefits. Your agency’s terms for authorising payments can have an impact on when your money is received by us and so in turn by you.

For more information on umbrella companies, or how an umbrella company works please get in touch with us. Call us on 0845 600 3974, or email info@mslpayroll.co.uk