Your umbrella company will manage the PAYE payroll process for you, making all the necessary deductions and detailing your income.
Your PAYE payslip will itemise every incoming amount and outgoing deduction. Additions including, pay from your contract, claimed expenses, holiday pay, and sick pay claimed. Deductions including income tax, national insurance contributions, umbrella company fees, and pension contributions.
Even though the umbrella company are administering your payroll, you as the individual are responsible for your tax payments. HMRC will inspect your records as an individual. This means that even if the umbrella company has incorrectly calculated your tax payments, you are responsible for any underpayments. It is always worth double-checking that your tax and National Insurance Contributions are correct.
You are only entitled to claim certain allowable expenses directly incurred from your work assignments. Any fraudulent claims are illegal, and should you be investigated, you will be found to be non-compliant. Always keep records of your expenses. Your umbrella company may not ask to see receipts, but HMRC will if they are inspecting you.
Your employer i.e. the umbrella company is legally obliged to provide employees with a clear and understandable payslip containing all the relevant information.
If you do not receive your payslip or if there are any items that you do not understand or recognise, ask your umbrella company for clarification immediately.