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 | 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 |
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Service Levels to Contractor |
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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 |
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Payment Process |
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