How To Read Your Payslip
Whenever you are paid by your umbrella company, you will receive a payslip (or 'Pay Statement') with a breakdown of the payments and deductions. Usually you will need to log in to your Umbrella Company account to view this.
At the top of your payslip, you will see the Funds Received; this is the pay sent over from Zen, as shown on your timesheet.
From there, you will see your umbrella company’s standard deductions:
- Umbrella Margin - your umbrella company’s fee, capped at £10 per week.
- National Insurance Employer’s Contribution (NIERS/Employer’s NIC) - paid by your employer (the umbrella company) to HMRC.
- Apprenticeship Levy - an employment tax paid to HMRC to fund UK apprenticeships.
- Employer/Employee Pension Contribution - an amount that your employer contributes to your pension fund. You can opt out of this by contacting your Umbrella Company.
- Holiday Pay - contribution to your Holiday Pay. By default this is paid to you directly, but you can ask your Umbrella Company to have it accrued.
Please note that the pay we send over to your umbrella company is slightly uplifted to account for these deductions. For a detailed breakdown of these deductions, feel free to view your Key Information Document in the Zen app.
Once these have been applied, you will be left with your Gross Pay (or taxable pay).
As usual, Income Tax, Employee's NI, and any other personal deductions will be made by HMRC according to your tax code.
Tax Code:
Please note that your tax code is set by HMRC. If your tax code is BR, or if it contains W1 or M1, then you may be paying emergency tax.This can happen for a number of reasons, but the most common issue is that HMRC do not have up to date information on your employment.
To resolve this, you will need to contact HMRC directly.
For any further queries about the above, please do not hesitate to contact us.