Umbrella Company FAQ’s
I have a question about your umbrella company services. Whom should I call?
Go to our contact page which lists numbers and email addresses for our departments. You can ask general questions about umbrella companies or talk to the people actually handling your work so feel free to ask for them personally on later calls.
What is IR35, what do I need to know?
You can find out detailed information concerning IR35 and umbrella companies here.
How do I get paid?
Once our umbrella company receives payment for your invoice, we produce a pay analysis and transmit funds electronically to you same day. We run a daily payroll to ensure that there is no delay in you receiving your payments. Cleared funds in your personal account will be available three working days from the transaction. You can elect to receive your monies "same day" for an additional charge of £15.00 per transaction, which is much less than most umbrella companies charge.
What expenses can I claim?
A sample list is given in the allowable expenses section. If in doubt include it on your monthly expense claim to us and let us review it.
What is an Expenses Dispensation?
A Dispensation is an agreement issued by HM Revenue & Customs to companies with a large number of employees that incur job related expenses. This reduces the administrative burden for the company as it reduces the need to report expense amounts set out in the dispensation. The company is still required to hold accurate records of expenses reimbursed to employees – it is not a licence for employers to pay tax free money to employees without keeping appropriate records. Do not be misled by umbrella companies that market themselves by advertising their “generous” expense allowances.
What is an MSC?
A Managed Service Company (MSC) is the term used for a limited company that is administered and managed by a scheme provider. The scheme provider typically takes on the roles of director and company secretary and will control the financial aspects of the company. There is usually a single employee using the MSC to bill for services and the employee will own 100% of the company’s shares. Umbrella companies differ from MSC’s.
Are Liberty Bishop an MSC?
No. The Liberty Bishop solution is a contractor umbrella company and is outside the scope of this definition. Umbrella companies are single limited companies with multiple employees. The employees are not shareholders and receive their pay in the form of a salary and reimbursed expenses and is fully compliant with HM Revenue legislation.
Can I claim travel costs to and from my place of work?
Yes, providing that your workplace is deemed as temporary by HM Revenue & Customs you are able to claim these costs. It can be difficult to determine if your workplace is temporary so feel free to contact us for further clarification.
What living expenses can I claim?
"Temporary living expenses" and subsistence can be claimed when you’re not living at your "normal abode".
Do I need insurance?
Employers and public liability cover are included in your umbrella company service to set amounts. Many agencies and clients also insist on Professional Indemnity insurance. Liberty Bishop’s purchasing power ensures highly competitive rates are available. See our insurance page for further details.
Do you deal with contractors in all industries?
We work with contractors in a wide array of industries. We are particularly experienced in working with IT contractors and are often regarded as the IT umbrella company.
Useful Pages:
Liberty Bishop
Unit A1, Basepoint Business & Innovation Centre, 110 Butterfield, Great Marlings, Luton, Bedfordshire, LU2 8DL
