How Gabem Umbrella works

Umbrella is for temporary or contract workers who are not self-employed, or who want the easiest, most hassle-free payment service available. They become employees of Gabem Management with full employee rights, including tax relief on work-related expenses. They're generally better off as they can offset tax against legitimate work-related expenses, so more money is paid into their account.

How it works for contractors

• Individuals are employees of Gabem Management Limited

• Full PAYE and NIC (employers & employees) deducted

• Contract of service (employment) with GML

• Minimum Hours Contract

• Option to opt out of regulations governing the conduct of employment agencies

• Expenses allowed - fully receipted (approximately 40p additional take home pay for each £1 claimed)
  • HMRC expenses dispensation granted to Gabem March 2009
  • HMRC invited to review Gabem processes, deemed them 'robust'
  • Allows Gabem to pay receipted subsistence expenses (up to £7.50 for 5 to 10 hours away from home, up to £15 over 10 hours)
    
• Personal Accident cover - chargeable (£2.50)

• Employers and Public Liability cover included

• 'Salary sacrifice' pension option available with 'double benefit' - every £10 gross sacrificed = £11.28 into pension, with a net cost to the individual of only £6.70

• Access to Mortgages and other FS products

• No charge for changes of agency or personal details

• Same-day faster payments or CHAPS direct to their bank account

• Free text-message service to confirm amount paid on payday

• Online submission of rates and hours

• End-of- year documents included in the package

• Optional tax return service.

What we deliver through our Umbrella Company option

• We work with your invoicing process, including self-billing if required

• Agency pays GML usually by BACS transfer

• GML makes payment to Operative:
  • Deducts Gabem margin, Employers NI, holiday pay and any expenses from the gross monies
  • Remainder is for ‘distribution’ to the operative subject to PAYE and Employee NI deductions
  • Remainder after PAYE and NI is net pay to operative
  • Monies paid into operative’s bank account – same day by CHAPS or Faster Payment process
  • Operative receives SMS text and also full detailed pay advice
    
• Holiday pay is subject to PAYE and NI deductions when payment is requested by operative (for workers in construction, Gabem has a dispensation for no NI deductions, which results in a net pay improvement of about £4 for a 40-hour week)

• Operative has no further tax liabilities, unless they have additional earnings from other sources

• Operative receives P60 & P11D at tax year end.