Following on from the change in legislation on 6th April 2021, it is the responsibility of each organisation to decide whether a role is inside or outside of IR35.
All nursing roles are currently designated as inside IR35. This means there are two different ways for Cromwell Medical to pay our workers.
The selection of an umbrella company is the responsibility of each worker. You are also responsible for ensuring the correct deductions are being taken from your gross pay.
Umbrella Workers - timesheets are due in each morning by 10 am for next working day payment to your umbrella company. Your umbrella company will issue payment to you according to their internal schedule.
Our clients can be processed in one of two ways, paper timesheets submitted by the candidate or electronically. This means we cannot process the paper timesheet submitted but wait for the electronic report from the hospital, with the shift being authorized for payment.
We always recommend you keep a copy of your paper timesheet for your records, or should any issues arise, however, we cannot pay you until we receive the electronic timesheet from the place you worked.
You are paid by the umbrella company because they are your employer. They will:
Cromwell Medical pays Cromwell Medical for your services.
This rate is different to the rate you are paid from the umbrella company, because of the additional costs for the umbrella company, which include:
Before you start work you’ll be given a key information document by the employment agency which will include all the details about what you’ll be paid.
Umbrella companies normally give you a listed reconciliation statement and a payslip.
As per the government guidelines, please take precaution if you are selecting an umbrella company. Companies can claim to save tax, but in effect are running tax avoidance schemes. You should check if the Umbrella Company are promising 80, 90 or 95%, only a fraction of your salary is paid through payroll, or you are paid using a loan.
What is a Key Information Document?
Arising from The Good Work Plan, Key Information Documents attempt to increase pay transparency for agency workers and provide key information regarding the relationship between the work-seeker and the employment business. On registering with Cromwell Medical you will be asked to review the Key Information Document for your chosen payment provider.
The Key Information Document is intended to improve the transparency of information provided to you, particularly around pay, including an overview of how any fees and deductions will affect your pay.
This will give you information about your pay and other details about your employment. It will show you the deductions and fees in relation to the assignment rate and contract rate and how this affects your gross and net pay.
The document should make it clear what Cromwell Medical will pay the umbrella company and what you will receive from the umbrella company (your contract rate).
The reconciliation statement will normally give a breakdown of the assignment rate received by the umbrella company from Cromwell Medical which lists the umbrella company’s costs, including employer National Insurance contributions.
The payslip will then include a separate breakdown listing your gross pay and deductions, including Income Tax and employee National Insurance contributions, to arrive at the net take home pay.
The payslip must show:
Your employer is not allowed to make deductions unless:
Many umbrella companies are compliant with the tax rules but some use tax avoidance schemes.
Understanding how you’re being paid is the best way to make sure you do not get caught up in tax avoidance.
Checking your payslips and contractual arrangements will help you confirm you are paying the right amount of Income Tax and National Insurance contributions, so you do not get an unexpected tax bill later.
Cromwell Medical Staffing are not entitled to provide financial advice, if you have queries on who you could chose as your preferred payment provider please seek financial advice from The Citizen Advice Bureau or from your accountant or financial adviser.
Umbrella companies are paid your gross wages on the next working day and will issue payment to workers according to their schedule. Please confirm with your umbrella company their payment schedule
ICG Medical’s list of preferred umbrella companies is available from our Payroll Department or your consultant upon request.
All umbrella companies are governed by HMRC, so the same rules apply to them as any other employer regarding deductions and statutory employment benefits. For complete peace of mind, Cromwell Medical has a PSL (Preferred Suppliers List) as we must ensure the companies, we use are in line with HMRC and FCSA Compliance guidelines.
Please note that you can choose other umbrellas, however they may need to go through additional checks and therefore please allow at least 2 weeks for the relevant due diligence checks to take place.
Umbrella companies issue payslips directly to all their workers. You would need to contact them for all pay advice.