Welcome to our Umbrella Hub

In here, you will find more information about our Umbrella service, answers to frequently asked questions about umbrella companies, and our take-home umbrella calculator to work out how much you will earn.


An Umbrella Company you can trust


MyPay+ provide a full suite of online payroll solutions including our Umbrella solution, PAYE, Deemed Tax, PLtd Company (PSC) and CIS. Together, these give contractors a choice of ways to manage their finances, business admin and tax exposure.


An Umbrella Company lets contractors work on temporary contracts in a hassle-free and compliant way. You become an employee of the Umbrella Company, with a contract of employment, holiday entitlement and pension contributions.


Following the changes made to the Off-Payroll Working Rules in 2021, it's more important than ever to choose an Umbrella Company you can trust. This ensures compliance and protects your IR35 status, so you are not exposed to the costly rules of IR35 legislation.

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The MyPay+ Umbrella solution



Our Umbrella solution is ideal for contractors who are deemed to be inside the scope of IR35 legislation.


Some of the core features and benefits include:


  • Contract of employment

  • Continuous employment history

  • Holiday entitlement

  • Pension contributions

  • Statutory payments

  • Tax relief eligibility

  • Insurance cover up to £25 million

  • Full compliance

  • Access to the MyPay+ online portal


Using the MyPay+ Umbrella online portal, you can log in at any time to manage your finances and your business accounts, to log time sheets and to submit records of your legitimate business expenses to deduct from your gross earnings.


It's a versatile platform that covers everything you need, giving you a single point of access to take care of your core business admin with the minimum of fuss and hassle.

How Umbrella works


As an employee under our Umbrella solution, you work on client assignments and maintain timesheets of the time you work. The client pays us directly, and we make the correct calculations of tax and benefits.


You receive a net income with no hassle or additional admin needed, keeping your business affairs nice and simple.


Our low weekly timesheet margins and choice of several contractor payroll options makes MyPay+ one of the best operators on the market, with a solution to suit your preferred approach to running your business interests.

Reduce your IR35 risk


IR35 has been a major hassle for contractors for years and is a regular area of focus for HMRC crackdowns.


Under HMRC guidance, end-user clients are told to manage their own exposure to IR35 risk by only hiring compliant and reputable firms - something that is very difficult to demonstrate as a sole trader.


MyPay+ takes care of IR35 compliance on your behalf, allowing end-clients to hire you through us as your Umbrella Company. We deal with your clients where payments are concerned and ensure your contract stays on the right side of the IR35 rules.


You get peace of mind and access to clients who might otherwise be unable to hire you, due to their risk management and due diligence rules. And crucially, you're protected against the additional costs of IR35.

How much will I earn?


Our Umbrella take-home pay calculator is a handy reference tool to estimate your take-home pay after appropriate deductions like business expenses, taxes and our fee.


There are no hidden costs - the calculator shows an accurate upfront estimate of your net income, and there should be only minor variations depending on the exact nature of your work and the contracts you accept.


You are welcome at any time to contact us directly at MyPay+ if you would like to discuss your circumstances in more detail, so that we can provide you with an even more accurate prediction of your net take-home pay than the calculator can produce.


It's normal for take-home pay to be quoted pro rata, so it can be compared against full-time (40 hours per week) salaries paid for other jobs. We can quote you an annual full-time equivalent salary, a weekly FTE or an adjusted take-home pay for the number of hours you typically work.


To find out more about any of the above, please contact us by telephone on 01925 912220 or by email to sales@mypayplus.co.uk. All enquiries are welcome and our team will be happy to help you decide if an Umbrella Company is the right solution for you.

Contractor FAQs

What is an Umbrella Company?

An umbrella company allows agency workers to engage in temporary contracts in a compliant and hassle-free way. You will become an employee of the Umbrella Company and will work under an employment contract.

The umbrella company then contracts out your services to the recruitment agency/client. In 2021, the Off-Payroll Working Rules were also reformed, making this an even more complicated area to navigate, and an experienced umbrella company can help you to adjust your setup to account for this. For many contractors, umbrella companies are a way to protect your IR35 status, so that you can avoid exposure to the complex and costly rules put in place by IR35 legislation.

How is umbrella pay calculated?

An umbrella rate or umbrella income is subject to statutory employer deductions, these include National Insurance, Apprenticeship levy and any workplace pension deductions (if applicable). The umbrella company will also charge a fee for the processing of your timesheets. Once these have been deducted, you will see your weekly gross earnings.


Your gross earnings are then subject to statutory employee deduction:

  • PAYE Tax and National Insurance

  • Pension contributions

  • Student/Postgraduate Loans, Child maintenance


As an employee of the umbrella company, you are still legally entitled to your tax-free

personal allowance and holiday pay.

How do umbrella companies calculate holiday pay?

Full-time employees in the UK are entitled to 5.6 weeks of paid holiday leave each year, equal to 28 days for those who work five or more days a week. This is inclusive of public holidays.


If you work less than full-time equivalent hours under an umbrella company, your paid leave entitlement will be adjusted accordingly.


You can have holiday pay in the form of accrual or credit.


Accrual means that we as the employer will withhold your holiday pay, and use these funds to pay you when you do take time off. Credit means that you will be paid your holiday pay in advance for each day that it is accrued, meaning that you manage your finances accordingly, and will not receive any pay when you take leave.

How much will I take home?

Everyone’s situation is different, depending on the hours they intend to work, and the umbrella rate that is being offered. For a fast estimate of how much take-home pay you will receive compared to your current gross earnings, use our Take-Home Pay Calculator.


You can also contact us directly for a more in-depth discussion. 

How do you calculate contractor salary?

Contractors work very different schedules, ranging from just a few hours per week to a more than full-time commitment.


This makes it difficult to compare contractor salaries directly, without adjusting them to take into account the number of hours worked and the hourly rate of pay.


Because of this, it's normal to calculate a pro-rata salary, equivalent to the weekly or annual earnings of a full-time employee - we'll look at this in detail below.

How can I work out a pro-rata salary?

A 'pro rata' salary accounts for the difference between the number of hours you work as a contractor, and the number of hours a full-time employee would work.


For example, if you work 30 hours a week, your earnings will be 75% of a full-time equivalent (FTE) salary based on a 40-hour full-time working week.


You can think of it as your hourly contractor rate, multiplied by 40 for a weekly FTE salary. You can then multiply the result by 52 to get an annual FTE salary.


The simple formula for this is:

Weekly FTE salary = 40 x Contractor earnings per week/number of hours worked per week

Annual FTE salary = 52 x Weekly FTE salary

Are you accredited?

We are! Our Umbrella offering is Professional Passport accredited. We are also in the process of gaining further accreditations so watch this space!


Contact us today for a free quote by emailing sales@mypayplus.co.uk or call us on 01925 912200.