Clients require a member of staff to work with them on a flexible basis. Typically, these assignments will be for a fixed term and cover increases in workload, illness cover or maternity/paternity cover. You will have a contract of services (through Change) for an agreed hourly or daily rate, which will cover the time you work and you will be entitled to holidays of up to 28 days per annum, based on the amount of time that you work. You will continue to be PAYE (for HMRC purposes).
Your legal working status will need to be reflective of the nature of the contract/assignment and “contracting/payment vehicle” to ensure that you are adhering to the appropriate taxation and legislatory requirements. Change will inform you of the working requirements of each assignment. However, we will never advise you on legal status – you should always take advice from a professional advisor if you are in doubt.
An umbrella company acts as your employer, and you will work through a contract of employment with that umbrella company. Rather than Change paying you directly, Change will pay the umbrella company, who in turn, will then pay you. Dependent on the nature of the work, you may be eligible to reclaim certain expenses applicable to your contract (as advised by the umbrella company) that will reduce your tax obligation.