Qualifying for statutory benefits like sick pay is often a huge appeal for contractors, acting as a secure safety net should the unexpected occur.
To ensure that every umbrella contractor is receiving what they are entitled to, Umbrella Supermarket has put together this handy guide on umbrella company sick pay and other benefits, so you know what you can receive and when.
In the UK, most employees are entitled to statutory sick pay if they are too ill to work. This is paid by an employer for up to 28 weeks.
To qualify you must:
For umbrella contractors, because they are made employees of their chosen company, they automatically qualify for statutory sick pay. This means that every contractor operating through an umbrella company is entitled to paid sick leave granted they meet the criteria as outlined above.
This is in contrast to the likes of limited company contractors who are self-employed. These contractors will not receive statutory sick pay and instead, if they fall ill, will have to cover the costs out of their own pockets.
The current amount paid to employees that are too ill to work is £95.85 per week.
Any contractor that has been ill for 4 consecutive days, including over weekends, can qualify for umbrella sick pay. However, you will only be paid for the days you would have been in work, these are also called qualifying days. So, if you don’t usually work weekends, you would not be paid for this time.
You must notify the umbrella company of your illness within 7 days. If you are sick for longer than a week, you will then need to provide a sick note from your doctor or GP.
You will not be able to claim umbrella sick pay if:
Many workers have been impacted by the current global pandemic and contractors are no exception. After all, if you fall ill, have covid-19 symptoms or encounter someone with symptoms, you will be required to self-isolate for at least 10 days.
The good news is that umbrella contractors required to self-isolate will be eligible for statutory sick pay. So, if this does happen to you, you can rest assured that you will receive help and support in the form of umbrella sick pay.
Not only can umbrella contractors claim sick pay, they also have a host of other statutory benefits available to them.
Firstly, umbrella contractors can claim paid holiday leave.
Under UK law, umbrella contractors that work full-time are entitled to a minimum of 5.6 weeks’ paid holiday. If you work part-time, this is worked out pro-rata. The amount of holiday pay you will receive is in line with your basic rate of pay. For contractors, this is what you are paid by the umbrella company, not what you charge the client.
Another statutory benefit umbrella contractors can claim is maternity or paternity leave.
For maternity leave, in the first 6 weeks, you will be paid 90% of your average weekly pay. After this, for the next 33 weeks, you will be paid either 90% or your average weekly pay or £151.20 per week, depending on which figure is lowest.
For paternity leave, you can take 1-2 weeks’ paid leave which is also set at 90% of your weekly pay or £151.20 depending on which is lowest.
Receiving statutory benefits such as sick pay, holiday pay and maternity or paternity leave under an umbrella company is a big selling point for thousands of contracts.
After all, it offers a level of security and safety they would otherwise not receive if they were contracting through a limited company. What’s more, an umbrella company takes on many of the difficult tasks of contracting such as invoicing clients, working out and paying tax and processing invoices.
If you have decided that operating through an umbrella company is the best way forward for you, next you will need to choose a company to work with. Don’t worry, Umbrella Supermarket are here to help.
As more and more contractors have opted to use the services of an umbrella company, more and more companies have opened up to cater for demand. Although this is great as it gives you lots of choice, it can also make it difficult to know which company will be best suited to your needs.
That’s why our award-winning umbrella calculator makes it quick and easy to compare umbrella companies based on your requirements. Simply enter a couple of details, let us know your preferences and we will generate a list of the best-suited companies for you. Ready to see what Umbrella Supermarket can do for you today?
Any contractor considering switching to an umbrella company will want to know how to find the best provider to work with.
Although you could spend your precious time and energy searching the web for the best umbrella company, there is an easier way – using an umbrella calculator.
In this guide, Umbrella Supermarket explains why every contractor should use an umbrella calculator in 2021.
If you are considering contracting you will need to decide on PAYE or umbrella.
It can be a difficult decision to make and contractors will inevitably be questioning which option will be the best for them.
To help every contractor get on the right track for them, in this guide Umbrella Supermarket looks at PAYE vs umbrella, outlining the key differences and how this will impact you.
There are many reasons that contractors across the UK opt to work under an umbrella company.
Umbrella companies offer an easy way to contract and remove the need for the contractors to worry about the burdens of admin, finances, tax and IR35, all things that limited company contractors have to deal with.
For this reason, many contractors will be weighing up their options and questioning whether it is worth using an umbrella company in 2021. To help make the decision that little bit easier, Umbrella Supermarket has put together this guide on the pros and cons of using an umbrella company.
Any contractor that is considering operating through an umbrella company in 2021 will need to understand Umbrella Company fees - from why an umbrella company charges fees, how they are paid to how much the contractor will pay.
In this guide, Umbrella Supermarket answers those all-important questions to help every contractor know exactly where they stand when it comes to umbrella company fees.
If you’ve made the decision to contract through an umbrella company in 2021, you will next need to find an umbrella company that’s right for you.
After all, there are lots of umbrella companies out there, so how do you know which one to choose?
To help you find the best umbrella company for you, in this guide Umbrella Supermarket outlines what makes a good umbrella company, so you can rest assured you’re making the right move.
One of the many advantages to operating through an umbrella company for contractors is that they become an employee of their chosen provider.
In turn, this means that the contractor will be automatically enrolled onto the umbrella company’s workplace pension scheme.
To help contractors find out more about umbrella company pensions Umbrella Supermarket has put together this handy guide.
If you are considering contracting through an umbrella company you will naturally have questions and queries over how they work.
After all, making the move to umbrella can be a big step for contractors. To help, in this guide Umbrella Supermarket explains how to get started with an umbrella company and share our top tips for using one in 2021.
PAYE or umbrella is a question asked by every contractor. Which one you opt for will have a big impact on your contracting career and lifestyle. So, it's important to make the right decision for you.
To help makes things a little bit easier, Umbrella Supermarket has put together this guide on PAYE or umbrella, outlining the key differences between each, to help you make the best and most informed decision for you.
One of the many benefits to working through an umbrella company is that you will receive holiday pay as well as a range of other statutory benefits including sick pay, maternity and paternity pay.
To find out more about umbrella company holiday pay, and how to calculate how much you will be entitled to, Umbrella Supermarket has put together this handy guide.
Contractors must make several decisions throughout their contracting careers. One big decision contractors have to make is how they will operate.
One way that contractors can work is through an umbrella company.
Umbrella companies have become an increasingly popular way to contract in the past few years, offering many benefits to the contractor. But, how do you know whether this option is right for you?
To help every contractor make the right decision for them, in this guide, Umbrella Supermarket explains when not to use an umbrella company.
There are tons of benefits to using an umbrella company, which is why they have become such a popular option for contractors in recent years.
After all, an umbrella company takes away the stress and hassle of operating through a limited company whilst offering contractors a range of advantages, such as statutory rights, paying them a salary, deducting correct tax levels and National Insurance, and taking care of tasks like expense processing and invoicing.
However, as more and more contractors opt to use the services of an umbrella company, more providers have started to claim that they are HMRC approved.
To bust the myths around HMRC approved umbrella companies and get straight to the facts, in today's guide Umbrella Supermarket look at whether HMRC approved umbrella companies really exist, so you know exactly where you stand.
If you're considering making the leap to contracting, you will understandably want to know how much you will have to pay in umbrella company costs. After all, this amount comes directly out of the contractor’s pocket, so it’s important to be clued up on how much you should expect to pay.
To help contractors, in this guide Umbrella Supermarket answer the all-important question of how umbrella companies cost in 2021.
