Service Comparison

Deciding which service is best for your agency is not necessarily a straightforward choice. We are always on hand to talk through your options with you, alternatively, you may find the below table useful in helping you decide.

Don’t forget, you can utilise both our models at the same time depending on your requirements.

Umbrella v Joint Employment

Service Comparison

Umbrella v Joint Employment

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Information

	Umbrella	Joint Employment
Service Use	Can be used in all sectors. Minimum rate in line with NMW + Holiday Pay + Company Pension + i4 Fee + Apprenticeship Levy + Employers NI	Can be used in all sectors. Minimum rate in line with NMW + Holiday Pay + Company Pension + Employers NI.
Contractor Status	Employed by umbrella on overarching contract of employment.	Jointly employed by i4 and agency on overarching contract of employment.
Employment Responsibilities	Umbrella company solely responsible for employment rights of the contractor, agency still involved in the chain should there be an employment tribunal.	Both employers have responsibilities to the worker, i4 in control of HR and payroll functions, agency in control of working finding services and AWR compliance.
VAT	VAT to be added to all income	VAT added only on the i4 fee as with joint employment the total employment cost is treated as disbursement
Charge Rate	Charge rate is inclusive of all employment overheads, including the i4 fee.	Charge rate is inclusive of all employment overheads excluding the i4 fee (which is invoiced-for separately).
Legislation	Fully compliant with HMRC including AWR, MSC, IR35, VAT & NMW legislation.	Fully compliant with HMRC including AWR, MSC, IR35, VAT & NMW legislation.
Tax and NICs	i4 responsible for calculating, deducting and paying Tax and NIC’s (including Employers NI) across to the relevant authorities.	i4 responsible for calculating, deducting and paying Tax and NIC’s (including Employers NI) across to the relevant authorities.
Pension	i4 is responsible for auto-enrolment and payment to NEST pension provider. Likewise, i4 is responsible for managing opt-out process.	i4 is responsible for auto-enrolment and payment to NEST pension provider. Likewise, i4 is responsible for managing opt-out process.
Apprenticeship Levy	Umbrella company responsible for calculating & paying of Levy. The levy is deducted from the charge rate we bill to the agency.	No Levy to be deducted.
Service Levels to Agency	Dedicated account manager 10+ pay runs per week Employment Intermediary Reporting provided as standard Key Information Document provided as standard	Dedicated account manager 10+ pay runs per week Employment Intermediary Reporting provided as standard Key Information Document provided as standard
Service Levels to Contractor	Dedicated account manager Mobile app/portal Daily payroll Payment tracker SMS payment alerts Comprehensive insurance package	Dedicated account manager Mobile app/portal Daily payroll Payment tracker SMS payment alerts Comprehensive insurance package No contractor fee
Agreement	Agency and i4 agree the master agreement. Once master agreement is in place, we can begin processing payments.	Agency and i4 agree terms via collaboration agreement. Once the collaboration agreement is signed and in place, i4 apply to HMRC for the PAYE reference, once in receipt of that, we can begin processing payments.
On-boarding Process	Agency refer contact details to i4 of contractor i4 registers contractor for payroll i4 issues payroll documents to agency	Agency refer contact details to i4 of contractor i4 registers contractor for payroll i4 issues payroll documents to agency
Payment Process	Agency issue i4 with remittance/schedule at the all-inclusive rate i4 invoice agency for remittance amount + VAT Agency pay invoice including VAT i4 pay the contractor minus all statutory deductions	Agency issue i4 with remittance/schedule at the gross pay rate i4 will issue agency a ‘proforma’ invoice detailing the amount of money owed to i4. Once i4 are in receipt of the funds, i4 sends agency an invoice where the status is shown as ‘paid’. The paid invoice includes the amount as a disbursement without VAT plus i4’s margin which is subject to VAT. i4 pay the contractor minus all statutory deductions.