Umbrella Companies
Everything you need to know
as a Healthcare Professional
The Healthcare Professional’s Guide to Umbrella Companies
Welcome to our guide tailored for Healthcare Professionals seeking umbrella payment solutions.
Explore this guide to help you make informed choices and access our preferred supplier list.
What are umbrella companies?
Payment umbrella companies are a payment option for Healthcare Professionals, offering financial services.
When you work through an umbrella company, you’re employed by your umbrella and work for ID Medical Group as a contractor.
We will pay the umbrella company for your shifts and they will then claim any available tax relief and make a payment to you after the deduction of the appropriate PAYE tax and National Insurance contributions.
There are various benefits when it comes to using an umbrella company, including:
• By registering with an umbrella company, you will become an employee of theirs. This entitles you to employee benefits, such as Statutory Sick Pay and Paternity/Maternity Pay.
• By processing your payroll with PAYE, you can be sure you’re paying the correct tax and NI contributions.
• The only income that compliant umbrella companies generate for themselves is the margin they deduct each time they process the payroll of an employee, which means there are no tie-in fees and no hidden costs.
However, it’s important to note that you must use the services of a compliant, UK-based umbrella company that will process your payroll in accordance with HMRC’s rules and regulations (PAYE).
The consequences could be severe if you use a non-compliant payroll provider, even by mistake.
Our preferred supplier list
Choosing an umbrella provider can be tiresome and complex, with so many options available.
As part of our commitment to providing you with the best possible service, we have curated a list of preferred umbrella companies known for delivering excellent financial services.
These companies have been selected based on their commitment to transparency, compliance and comprehensive financial support for Healthcare Professionals.
The companies listed below have signed up to ID Medical’s umbrella code of conduct and all offer a free telephone consultation, so we encourage you to reach out to them with any questions you may have.*
*While ID Medical has done everything it can to thoroughly vet all suggested umbrella providers, it’s important to note that we are not qualified to provide financial or tax advice.
Should you choose to work with one or more of these umbrella providers, you do so entirely at your own risk and so we would strongly recommend that you confirm with your chosen umbrella that all of your income is subject to appropriate deductions for PAYE tax and NICs. ID Medical cannot be held responsible for any loss you may incur or believe you have incurred as a result.
Umbrella Companies not on our preferred supplier list
If you wish to use a provider who isn’t on the list, we’ll need to thoroughly vet them prior to making payment. This will help us ensure that their services carry no risk to ID Medical Group, and more importantly, no risk to you.
It’s important to note: As you may be aware, some umbrella companies use schemes such as loans, profit sharing bonuses, tax deferral and marketing or job board credits to artificially increase the amount of pay you take home. These schemes almost always involve you signing two or more agreements; if this is the case then you are probably signing up to a tax avoidance scheme.
HMRC is pursuing these umbrellas, and the individuals using them, with increasing success, and this now often results in workers receiving large bills for unpaid taxes, interest, and penalties. Given this backdrop, and as a result of our vetting process, we may not be able to work with every umbrella.
We take tax compliance seriously – if an offer sounds too good to be true, it almost certainly is, and we would urge you to let us know immediately of any umbrella that offers you a scheme that looks in any way dubious.
