Priory Umbrella

The Priory Contractors umbrella solution offers an extremely efficient way to maximise a contractors earning without the hassle of running their own limited company. We take responsibility of all the contractor's administrative affairs and offer the benefit of claiming business expenses to reduce their tax liability.

Key benefits

• Full employee status and continuation of employment
• Robust and flexible employment contracts, designed to protect the contractors best interests
• Complete payroll administration ensuring full compliance with current HMRC legislation
• The ability to claim relief on legitimate business expenses in accordance with HMRC guidelines
• Prompt payment to the contractor the same day the funds are received.
• Wage slips with all payments and deductions fully declared
• Statutory benefit entitlements, advanced holiday pay and pension allocation
• Comprehensive Insurance
• Easy administration - the bulk of the business paperwork will be carried out by Priory Contractors and we will provide copies of annual P60's and year end documents
• Telephone support from friendly, knowledgeable and helpful staff
• Our services represent great value for money operating a no work, no fee policy
• We provide complete peace of mind

How it works

Being paid via an umbrella company is an alternative to being paid PAYE through an agency. Umbrella companies work by engaging contractors and employing them on the same basis as any other business employs staff.

This means that as an employee the contractor would be provided with a contract of employment, providing full employment rights and statutory protection. At the outset of the employment an expectation is agreed that the contractor will have a series of assignments at different locations on this basis the contractor should be able to benefit from any travelling and subsistence costs associated with carrying out work at their temporary workplace.

The contractor can use Priory Contractors for multiple assignments and is not restricted to work for one agency. We can Invoice multiple agencies for whom the contractor has worked and consolidate them into a single payroll. All income is paid as a combination of salary and legitimate business expenses, meaning the contractor can maximise their take-home pay while being secure in the knowledge that the necessary deductions for PAYE tax and NIC are being made. We guarantee payment will be made to the contractor on the same day the money is received from the agency.

We have approved dispensations from HMRC which allows the contractor to claim up to specified limits without the need to submit a receipt; which is explained in our expense policy. These will be monitored by the relationship manager to ensure that every expense claim remains compliant and there is no comeback the contractor.

We are firmly committed to the fair payment of holiday pay and to the protection of holiday pay rights of our employees. We pay 100% of holiday pay due with no exceptions and we monitor the working patterns of our employees to ensure holiday is taken in line with UK working time legislation.

If the contractor chooses to leave Priory Contractors we will be sorry to see them go but all that is required is notification of their intentions. Once the last payroll is completed we will produce a P45 for the contractor to present to their next employer.

We operate a no work, no fee policy; there are no hidden costs, such as, set up or cancellation fees or charges for submitting expenses and we only make an administrative charge for each payroll processed.

Travel Expenses

Working through an umbrella company the contractor is entitled to reduce their tax liability by claiming back certain allowances subject to HMRC guidelines. They state that any claims must relate wholly, exclusively and necessary in the performance of your duties.

Due to the dispensations granted to Priory Contractors Limited we do not require to see any proof of expenditure up to those limits and it is the contractor's responsibility to maintain their own records to support the claims they make in the event of an investigation by HMRC.

We would require proof of any out of pocket expenditure incurred, with their prior agreement, on behalf of a client and that had not been settled directly with the contractor. This would be subject to an invoice to the client and you would be reimbursed in full and the payment not subject to any taxation.

Travel: Travel by public transport, car parking, congestion charges or any tolls paid would be claimed in full. Journeys by car would be claimed at £0.45 per mile for the first 10k miles and £0.25 thereafter. A claim can also be made for passengers at a rate of 5p per mile. Contractors must retain their receipts, including those for fuel, plus records of the journeys undertaken showing dates, start and finish points and reason for travel.

Meal Allowance: If working more than 5 miles from the place of residence the contractor is entitled to claim for meals during the course of the day according to the period away as follows:

• Less than 10 hours a lunch may be claimed
• More than 10 hours a lunch and a breakfast or evening meal may be claimed as appropriate

All three meal allowances may only be claimed if it is necessary to stay away overnight and the cost of meals is not included in the cost of accommodation.

Accommodation: Accommodation may only be claimed if it is a condition of the employment to stay away from home. If the client has agreed to compensate the contractor for staying away from home this is added to the timesheet and payment made in full at the agreed rate.

If staying in a hotel or bed & breakfast the full amount may be claimed.

Receipts will be required for amounts in excess of our dispensation. It is permitted to claim when staying with friends and family and records should show the name and address where stayed.

Daily Allowance: When staying away overnight an amount of £5 per day maybe claimed without receipt to cover personal incidental expenses (P.I.E.).

Tools & Clothing: Equipment necessary to carry out work and clothing specific to the work undertaken, e.g. fluorescent jackets, overalls, safety shoes, gloves may be claimed. It would be necessary for a copy of the invoice to be submitted with the claim. An allowance of £2.00 per week may be claimed for laundering protective clothing.

Fees: Professional / course fees may be claimed if relevant to the occupation, including books and medical tests, and a copy of any receipts must be included with the claim.

Telephone: Only business calls may be claimed not the cost of line/service rental or the purchase of a handset.

Miscellaneous: Stationery, Postage, Training and Eye tests.

Dispensations are granted to Priory Contractors by Inland Revenue under section 65 and section 96 of the Tax (Earnings and Pensions Act) 2003. The dispensation applies to the expense payments and benefits set out above, without the need for receipts, except where indicated. Please note that these allowances are offset against the contractor's tax liability due to their unique circumstances they are not 'expenses' that are added to the invoiced earnings. For any queries please call us on 01889 583 592 or email us at info@priorycontractors.co.uk

Why Claim Expenses?

The single biggest way to benefit as a contractor working through an umbrella company is by claiming HMRC approved expenses. The more legitimate expenses that the contractor can claim the less tax they will pay! All expenses claimed must be incurred wholly, exclusively and necessarily in the performance of the duties; please note that this is not a way of avoiding tax.

For example, if a contractor earns £500 per week gross, through PAYE they would pay tax and national insurance contributions on the full £500. Through Priory Contractors if they claimed £200 in expenses they would pay tax and national insurance contributions on £300 with the deductible expenses of £200 then added back onto the gross pay. All payments are subject to national minimum wage legislation should it be applicable.