Frequently Asked Questions..
What is an Umbrella company?
An Umbrella company is generally the employer of workers who are on fixed term contract assignments, usually through a recruitment agency.
The agency pays the Umbrella company who in turn pays the contract worker through PAYE with the added benefit that legitimate business expenses can be claimed to offset some of the tax and NI liability.
Umbrella employees gain a variety of statutory employment rights.
Umbrella company employment is an alternative to being paid directly by a recruitment agency, being self-employed or forming your own limited company.
How do I join Gabem Umbrella and how long does it take?
You can sign up by phone or online in as little as 15 minutes. Then just send us your ID/right to work documents, electronically accept your employment contract via the link we send you and you are good to go.
For further information see: How it works
How much could I take home with Gabem?
For tailored calculation, based on your individual hours, rates and expenses, visit our: PAYE Calculator
How much does it cost me?
Gabem takes a margin of £22 per week, which equates to £11-13 of take home pay depending on your tax circumstances.
If you are on our Umbrella Light option, we retain a reduced margin of £10, which equates to £5.98 depending on your tax circumstances.
There are no hidden charges.
Why should I choose Gabem over other Umbrella companies?
We have operated in this industry for over 15 years and in that time we’ve made more than 2.5 million contractor payments.
We also have long-standing relationships with most UK recruitment agencies.
In a recent survey 95% of our contractors said they would recommend us to a friend or colleague.
For more information about the company visit: About Us
Why do we ask for proof of ID?
As the employer, it is a legal requirement for us to see proof of your identity and right to work in the UK.
How do I claim expenses and what can I claim for?
A major benefit of being employed by an Umbrella company is being able to claim legitimate expenses.
These are expenses which are “incurred wholly, exclusively and necessarily in the performance of your duties” (HMRC definition).
Every pound you claim will increase the amount you take home by a minimum of 40p.
If you are just claiming mileage allowance and daily food you can submit your claim easily via our Online Portal.
Otherwise simply complete the Gabem Expense Form and send it to us with your supporting receipts.
For full details of what you can claim visit our Expenses Page
What is an expenses dispensation and does Gabem have one?
There is a lot of confusion around what a dispensation is used for.
Essentially it is an agreement between HMRC and an employer to reduce the administration we undertake to manage your expenses.
Because Gabem hold a dispensation from HMRC, we do not need to include allowed expenses on a P11D form and likewise you do not need to put them on your tax return.
How and when do I receive my money?
Depending on your agency you can be paid weekly, fortnightly, 4-weekly or monthly.
If you are weekly paid we will normally pay you on a Friday and all payments are made by same-day transfer.
Do I receive a payment record?
Every time you get paid we will email you a secure link which from which you will be able to electronically access, download and print your payment record.
What statutory deductions are made and why?
All employee costs must be paid out of the turnover that comes from the agency, this applies to Employers NI, Holiday Pay, Pension deduction (if appropriate) and Gabem’s margin.
Agencies tend to uplift the rate that is paid to an umbrella company specifically to cover these costs.
Once these and any allowable expenses have been deducted then the remainder is paid as your wage (hours at National Minimum Wage) and profit related pay, which are subject to PAYE tax and Employees NI.
How is my holiday pay calculated and when can I take it?
We reserve holiday pay out of the total money we receive from your agency.
The amount reserved is calculated based on your hourly rate and the hours you work.
Either you can accrue your holiday pay and request it to be paid out when you take time off, or you can opt into having it paid with your wages each time you are paid.
Why is my holiday pay subject to tax and NI?
Holiday pay, along with bonuses, overtime pay etc, are all classed as taxable income and are therefore subject to tax,NI and pension deduction (if appropriate).
Do Gabem pay sick pay, maternity and paternity pay?
Yes, as long as the necessary statutory requirements are met, you are entitled to receive SSP (Statutory Sick Pay), SMP (Statutory Maternity Pay) and SPP (Statutory Paternity Pay).
What insurance cover do I have?
You are are automatically covered by Gabem’s Public and Employers’ Liability insurance along with Professional Indemnity cover if it is a requirement of your job.
You also have the option to take out our Personal Accident insurance for a charge of £2.75 per week which can also be extended to 24-hour cover for an additional £1.50 per week.
Can I go to any agency or company?
Yes, we work with hundreds of agencies and companies throughout the UK.
If we are not already contracting with them we will ask you for their contact details to ensure that we are able to establish a relationship to satisfy all parties.
Is there a charge to change agencies or companies?
No, Gabem Umbrella is designed for you to take us with you as you move from assignment to assignment – you just need to let us know.
What happens when I work for more than one agency or company in a week?
Just tell us the details and we will process your payments, simple as that – there is no additional margin.
What will my employment status be?
You will be an employee of Gabem Management Limited.
Can I not be paid as self-employed?
Significant changes to self-employment legislation were introduced in April 2014.
This means that any individual working through an intermediary (such as a recruitment agency or an umbrella company) who is subject to any degree of supervision or control cannot be paid as self-employed.
Does Gabem find work for me?
As a Gabem employee, you are responsible for contacting agencies or companies for work, then telling us when you have found new work so that we can put contracts in place for the provision of your services. However we will assist you if you are looking for work.
Do I have to complete a self-assessment tax return?
HMRC may require you to complete a self-assessment return at the end of the tax year.
We provide you with all the necessary documents relating to your Gabem employment.
Will I have further tax to pay?
We deduct appropriate tax on the sums we handle for you, so there should not be any further tax to pay on your earnings paid by Gabem.
You are responsible for declaring any additional income or capital gains to HMRC.
Do I have a workplace pension?
Gabem is an employer for the purposes of pensions auto-enrolment.
If you are an eligible worker you will be automatically enrolled into NEST (National Employment Savings Trust) 3 months from the date you join Gabem.
Even if you are not automatically enrolled, may still be able to join the pension and should contact us for further information.
What are my Health & Safety responsibilities?
You are required to comply with Health & Safety obligations at your place of work.
You must also read and comply with the Gabem Health & Safety information
This is reviewed regularly to ensure it is up to date.
I don’t want to break any tax rules – is Gabem compliant?
We take compliance very seriously and operate within all employment and tax legislation applicable to our business.
For full details go to our Compliance page