One of the benefits of working for an Umbrella Company was the ability to reduce your U.K. Tax liability by offsetting your travel and subsistence costs (lunch, overnight stays etc.)

A new government legislation came into force on the 1st April 2016 removing this benefit, therefore, ‘Umbrella Companies and Payroll companies’ can only offer you, the employee, Statutory Sick Pay, Holiday Pay, Statutory Maternity and Paternity Pay.

If you have been working in the U.K for one employer and have been paying Tax & N.I.C (National Insurance Contributions) for a certain period of time you are entitled to all of these benefits, your ‘Umbrella Company or Payroll Company’ will charge a fee to process your pay, so, RMTA’s advice is to ‘shop around’ for the best possible deal, query any deductions taken from your pay with both your supply agency and your ‘Umbrella/Payroll Company.

N.B. Everyone in the U.K pays both Tax and NIC. Please see Tax and NIC explained.

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