What is an ‘Umbrella rate’ and how is calculated?

Your agency will have agreed with you an hourly ‘umbrella assignment rate’ before your work has started. This rate is uplifted compared to a regular PAYE rate – your agency provides this enhanced rate to accommodate for the company overheads that when operating through an Umbrella company, you will be subject to take on. These company deductions include your holiday pay, employers national Insurance, apprentice levee and pension contributions where applicable. Bishopsgate can provide you with an illustration of your take home pay so you can see what and how these deductions are handled allowing you to negotiate your hourly rate if needed.

What is apprenticeship levy?

The Apprenticeship Levy was introduced at the start of 2017/18 tax year. It is a tax on UK Employers used to fund apprenticeship training. As Bishopsgate’s pay bill exceeds the £3 million qualifying criteria, this levy will apply within the company overheads.

Details on how to opt out/into pensions.

All employers must provide a workplace pension scheme. This is called ‘automatic enrolment’. As your employer, Bishopsgate must automatically enrol you into a pension scheme and make the necessary contributions. Click here for more info from gov.uk.
• Auto enrolment applies after being employed for 12 weeks.
• Details will automatically be provided to NEST once your 12-week engagement has surpassed.
• You won’t be able to opt out until you’ve been enrolled, and you have received your NEST ID which will be on the letter they will send to you.
• Once you’ve received your NEST ID there are multiple ways to opt out.
You can:
• Opt-Out online at nestpensions.org.uk/opting out.
• Call NEST’s automated telephone line – 0300 020 0090
• Request a paper opt-out form from NEST and then fill it in and send it back to us.
If funds have been paid into NEST but you chose to opt out, these funds will be returned through salary payments.

What does Bishopsgate margin cover?

Bishopsgates margin covers the costs of processing contract administration between the agencies/end clients, the costs of insurance cover, our staff overheads who ensure that all tax and national insurance contributions deducted on your behalf are promptly sent over to HMRC, keeping your tax affairs up to date and allowing us to process and handle funds promptly.

Do I need to register for a UTR number with the CIS Office once I have received it?

If you are going to begin trading as a sole trader, you will need to register as self-employed with HMRC, to receive your Unique Taxpayer Reference (UTR) number. You can do this online through the Gov.uk website, or by calling 0300 200 3500.
Once you have registered for self-employment and received your UTR number, you will need to register this on the CIS, by calling the CIS office on 0300 200 3210. If you do not register your UTR, you will have tax deducted at the higher rate of 30% on all payments made to you.

Do you process expenses?

As a result of legislation which was introduced in April 2016, contractors who are under the right of supervision, direction, or control (SDC) are no longer eligible to claim home to work travel and subsistence expenses. Other business expenses may be claimed at the end of the tax year, via a P87 form or a self-assessment tax return.

Further information on what you may be able to claim is available via clicking here.

Do you pay LTD companies?

Bishopsgate does not currently accept registrations as LTD companies to comply with IR35 legislation that came into effect in April 2021.

We have the options of either Umbrella PAYE or CIS Self-employed as a sole trader (if the client permits it and is within construction).


I have asked for my holiday to be paid out at the point of each payment; how do I know this is happening from the payslip?

On the payslip if the holiday pay is being paid it will show under ‘Employee Payments’. If it is being held it will show under ‘Employee Deductions’.

For more information, visit the reconciliation example by clicking here.


How do I understand my pay slip?

Your pay slip can look confusing so we have an example explaining all the different aspects here.

Can I be paid via various agencies?

Absolutely! One of the key benefits of using a compliant Umbrella company is having a single employer managing various assignment incomes keeping all of your personal tax affairs in order.

When is "close of business" for Bishopsgate?

Bishopsgate operate until 5:30pm Monday to Friday with a 24/7 out of hours telephone service or you can contact us via the various options on our website.

How do I generate a share code?

Please visit our right to work page for information on share codes and links to gov.uk by clicking here.

What is our right to work criteria?

There are certain things you need to have in place before you can start working.

Please find our right to work criteria here.

Why am I paying both employer and employee National Insurance Contributions?

When you’re a direct PAYE employee of a company in the UK, the company would pay this along with other company costs. When working through an Umbrella Company, this is a cost that comes out of the assignment rate. Whilst working on temporary assignments via an Umbrella, an agency/hirer gives uplifted assignment rates to cover these additional costs making sure the gross amount for tax is in alignment to PAYE market rates.

I am a student, should I be paying tax?

Students are not exempt from paying tax and National Insurance. Income tax will be deducted inline with your tax code and National Insurance is deducted at the national rate.

I have a student loan, how much will you deduct?

If you have taken out a student loan, Bishopsgate may also take deductions towards your loan. The amount of the deduction and when the deduction is made depends on your loan agreement. You can read more about your student loan plan here, https://www.gov.uk/repaying-your-student-loan/what-you-pay.