CWC Solutions like all umbrella companies is a limited company which employs individuals, becoming their employer and providing access to full employment rights with sole responsibility for managing those individual’s employment income under PAYE along with all statutory payments.

Often the reason for using an umbrella company is due to the simplicity of working via one company each year, rather than having various employers, i.e. multiple agencies and hirers. Some contractors and agency workers use CWC Solutions where IR35 would otherwise apply, and they decide that a limited company is not worth the cost or responsibility.

Since April 2020, any worker who uses an umbrella company must be supplied with a Key information Document by their agency or hirer before a job is offered, in this case identifying CWC Accounting Solutions as the employer, along with important information like the basic pay rate that the company will pay the worker. The holiday pay entitlement must also be clearly laid out and calculated on the worker’s total employment income.

The relevant employer costs and company margin are paid to CWC Solutions as an addition by the agency or hirer as part of an assignment or intermediary rate, which is sometimes called the umbrella rate and this never exceeds £23.46 per week. These amounts are not deducted from the basic pay rate and holiday pay offered to each worker at the outset as stated in the Key Information Document.

After receiving the Key information Document and then agreeing to join CWC Solutions, the payslips supplied are generated using the same payroll software that many accountancy firms use, this means that payslips are clear and fully itemised. We offer a set pay rate as well as the National Minimum Wage plus commission model, and you can see both examples below. The set pay rate is not widely available yet, but we find that it has advantages over the NMW/Commission pay structure, because it’s easy for workers to make pay rate comparisons and a set pay rate is more accepted by mortgage providers etc.

For additional compliance purposes, our payslips also inform employees of the name and reference number of our Employer PAYE Scheme that they are registered under with HMRC. Employees may at any time, cross reference their payslips with the payroll reports that we file with HMRC, which can be accessed through the employee’s personal tax account.