As long as the timesheet has been received by 4pm on a Tuesday, payment will be made for shifts worked the week prior on Wednesday. Any shifts submitted in the same week will be processed the following week.
Shifts worked the previous week will be paid Friday.
UK income tax rates depend on your income. Currently, the UK basic income tax rate is 20%. This increases to 40% for your earnings above £50,270 and to 45% for earnings over £125,140. Your earnings below £12,570 are tax-free.
How much you’ll pay in National Insurance depends on what kind of National Insurance you’re paying.
There are four main classes of National Insurance:
- Class 1 is paid by employees and employers
- Class 2 is paid if you’re self-employed
- Class 3 is a voluntary contribution
- Class 4 is paid if you’re self-employed and have profits over a certain amount
Class 1 National Insurance Rates
If you’re an employee you start paying National Insurance when you earn more than £242 a week (2023/24).
The National Insurance rate you pay depends on how much you earn, and is made up of:
- 12% of your weekly earnings between £242 and £967 (2023/24)
- 2% of your weekly earnings above £967.
For example, if you earn £1,000 a week, you pay:
- nothing on the first £242
- 12% (£93.24) on the next £777
- 2% (£0.66) on the next £33
An umbrella company is a payroll intermediary that processes the payroll of temporary workers.
An umbrella company must process PAYE and NI contributions, holiday pay, and adhere to the National Minimum Wage in the same way as an employer who would pay you directly. However, an umbrella company will charge you for their services.