Umbrella Solutions for the contracting world

MANAGEMENTSYSTEMS

08/1832

Helping you get more

out of your working life

provide specialist accountancy and payroll services to thousands of contractors and freelancers.

We know you put a lot into your work and it’s our job to make sure you get more out of it. Our umbrella company covers all of your employment needs including invoicing, PAYE and expenses. We

take care of everything to ensure

that your pay is quick, compliant and

We have included lots of information to help you get to grips with our umbrella company, but if you require more information or guidance, we’re always

How we work with you and your agency

Your responsibilities1. Get to grips with our online

portal (DOTS).2. Review our Expenses Policy.3. Ensure you submit your

timesheets and expenses at least 48 hours before you are due to be paid to avoid delays.

Your agency/direct client will then issue us with a contract for your services at the rate that you have agreed with them (your contracted rate).

Each week/month, we will invoice your agency/direct client with details of services that you have provided.

Your agency/direct client then forwards the funds to us.

We make payment to you.

We deduct our margin which covers the administration

of your employment as well as any contributions that you have opted for (eg. pension).

We make the necessary deductions for Income Tax, Employee’s

National Insurance, Employer’s National Insurance and pay

them directly to HMRC.

You register with our umbrella company and become an employee of Danbro Ltd.

Helping you get more Timesheets and expenses

online portal, DOTS, makes it all so much simpler.

When it comes to your expenses, as long as you have incurred the cost, you can claim it back. You can claim expenses using our

This means that by claiming expenses for travel and subsistence, the amount of your contracted rate that is subject to HMRC deductions is less, leaving more in your pocket each week/month. Remember to review our Expenses Policy for a complete explanation of expenses. This can be found at www.danbro.co.uk/umbrella/expenses-policy

What is classed as an expense?• Mileage from home to work

• Breakfast up to £5.00* (if you leave before 6.00am)

• Lunch up to £5.00* (if you work over 5 hours)

• Lunch up to £10.00* (if you work over 10 hours)

• Late evening meal up to £15* (if you work later than 8pm and buy a meal before the qualifying journey ends)

Please note: Breakfast and late evening meal rates are for use in exceptional, irregular circumstances only. These rates are not intended for employees with regular or late work patterns.

* Per day

Your expenses claims must: • Be business related

• Be related to the correct timesheet, so it makes sense to submit time and expenses simultaneously

• Be submitted at least 48hrs before we process your pay

• Be accurate. Once submitted they cannot be amended

• Not be claimed if you anticipate working for the same client for more than 24 months

• Not be claimed if you anticipate only working with Danbro on one assignment

1. Submitting timesheetsYou should submit your hours as soon as you have completed your weeks/months work.

Step 1. Go to www.danbro.co.uk Step 2. Click on Client LoginStep 3. Login to DOTS using your username and passwordStep 4. Click Add New TimesheetStep 5. Check the period ending date is correct and confirm the datesStep 6. Input your daily hours. Use decimals: so if you’ve worked

7hrs 45mins, you would input 7.75 hours. Alternatively, use the Quick Fill option to fill multiple days with a specific number of hours

Step 7. Click Update Timesheet. DOTS will total your hours and you’re ready to complete your expenses.

2. Creating a new expense templateTo make the process of uploading your expenses as simple as possible, you have the option to create expense templates so you can use them week after week without having to enter all the information required each time.

Step 1. Go to My ContractsStep 2. Select Edit ContractStep 3. Navigate to Expense template and select Add New

Expense TemplateStep 4. Insert an appropriate template name and select the type

of expense template you wish to create Step 5. Complete all fields required and Save ChangesStep 6. You will now be able to select this template when

submitting expenses on future timesheets.

3. Submitting expensesHaving submitted your timesheets you’re ready to upload your expenses. Simply click Expenses for this period once you have completed your timesheet. We recommend that you submit your timesheet and expenses together, as this saves time and makes the process much easier for you. Alternatively, you can add expenses at a later date by selecting Manage Expenses against the applicable timesheet.

Step 1. Select Add a New Expense. Alternatively, you can add an expense from a template (please see 2.)

Step 2. Click on the Date Icon and select the date the expense was incurred

Step 3. Select the type of expense from the dropdown menu

Step 4. Enter a short description of the cost incurred and complete any fields required for that type of expense

Step 5. Enter the total amount of your expense claim (mileage is calculated automatically) and upload receipt (if required)

Step 6. Click on Add Expense

Step 7. Click Back to Timesheet

Step 8. Once you are happy all the information is accurate, and your claim relates to the correct timesheet, click Submit Timesheet and Expenses for Processing where you will be required to agree to the intentions statement. To confirm your intentions, click Submit Timesheet and Expenses for Processing.

Helping you get more

Understanding your payslipsEach time we process your pay you’ll receive a payslip and a reconciliation sheet. You can receive them by email, post or online through DOTS. We’ve annotated a sample of both a payslip and reconciliation sheet to make everything perfectly understandable.

Payslip Explained

1. Your unique payroll code.

2. The date the payment has been processed.

3. Your National Insurance number.

4. Danbro’s PAYE reference number.

5. Gross Pay - Gross pay is your contracted rate minus expenses and company deductions. This equates to the total of national minimum wage and DPSB

6. Holiday Pay Advance - Danbro does not hold any monies from your contracted rate, therefore this shows the portion of your salary that is for holiday pay.

7. Gross Income - The total of all the income values. This value will be subject to all the PAYE deductions.

8. Income Tax - The amount of tax deducted from your gross pay.

9. National Insurance - The amount of National Insurance deducted from your gross pay.

10. Total Deductions - The total that will be taken from your gross pay to determine your PAYE net pay.

11. Taxable Pay - The total value of taxable pay for all your payments made this year.

12. Tax - The total amount of tax deducted from all your payments so far this tax year.

13. Taxable Pay - The taxable income for this payment only.

14. Tax Period - The tax period the payment was processed in.

15. Tax Code - The tax code used to calculate this payment.

16. Pay Method - The bank transaction method used to send the payment.

17. Net Pay - The PAYE net pay value.

18. Expenses - The payment of your expenses.

19. Paid - The total value sent to your bank account.

PAYSLIP

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10101 Mr NE Body 07/09/2014 TN123456C 065/FZ04420

304.31

36.73

23.04

23.04

54.93

286.11

160.00

446.11

Gross Pay

Holiday pay in Advance

Taxable Pay

Tax

Taxable Pay

Taxable Period

Taxable Code

Pay Method

Net Pay

Expenses

Code Name Pay Date NNO PAYE

Taxable Pay Breakdown Deductions

Gross Income Income Tax

National Insurance

Total Deductions

Year to Date This Period Net Pay

Paid

BAC

Contracted Rate

1. Hours - Indicates the number of hours you have worked.

2. Units - Will indicate the value multiplied by the rate that will be used to set the correct amount.

have additional lines for other income e.g. bonus/chargeable expenses.

3. Rate - indicates the value per unit that calculates the correct amount.

4. Amount - Indicates the total of each line entry.

Expenses Breakdown

This area will give a summary of the expenses processed against this payment. Please note due to limited space it may not always be possible to supply the full list of all your expenses.

5. Accrual Balance - Tax must be applied to at least National Minimum Wage. On occasion, expenses must be accrued and will be carried forward to future payments.

6. Mileage Total to date - HMRC state that 10,000 miles can be claimed at 45 pence per mile and 25 pence thereafter. Please note that this rate is for car use. Other rules apply for motorcycle mileage.

Company Deductions

7. Employer Margin - Danbro deducts this margin to cover the administration costs of your employment.

8. Employer’s National Insurance - All employers are obligated to pay Employer’s National Insurance (ENI). When you engage with an umbrella company, they become your employer and are responsible for the payment of your ENI.

9. Holiday Pay - Holiday pay does form part of your contracted rate of pay and this deduction will show you the proportion of your contracted rate of pay that is accounting for your holiday pay. At Danbro we do not hold your holiday pay therefore while this shows as a deduction in this area, you will notice an addition on the PAYE part of your payslip for the same value. We will not hold back monies to cover holiday periods, therefore please make sure you make necessary provisions to cover holiday periods.

10. Pensions Contribution - This will show the portion of your contracted rate of pay set for your employer pension contribution.

The employer contribution is a requirement of your employment under the new work place pension scheme known as auto-enrolment.

Summary

11. Contracted Rate - Indicates the total gross income received by Danbro for your contracted services.

12. Less Expenses - A summary of

This amount is not subject to any National Insurance, ENI or Income Tax and is exempt from attachments of earnings.

13. Less Company Deductions - Provides a summary of all pre-tax deductions which must be taken before we can calculate the employee tax deductions.

14. Holiday Pay Advance - The counter to the pre-tax deduction of holiday pay. Danbro advances the holiday portion of your contracted rate. This value is added to be included in your taxable pay.

15. Gross Income - This shows the total value of your taxable income. This is the amount subject to Income Tax, National Insurance and any other PAYE related deduction. This value will show on your PAYE payslip.

RECONCILIATION SHEET - CONTRACTED RATE

05/09/2014

Week Begin Timesheet Pay Element Hours Units Rate Amount

Total

Total

Total

Total Gross Income

EXPENSES BREAKDOWN

COMPANY DEDUCTIONS

SUMMARY

123456 Standard Rate Pay 37.5 1537.5 562.50

562.50

24/08/2014

24/08/2014

24/08/2014

24/08/2014

Business Mileage

Subsistence

Business Mileage

Accrual

Accrual Balance

Mileage Total to date

Employer Margin

Employer’s NI

Holiday Pay

Pension Contribution

Contracted Rate

Less Expenses

Less Company Deductions

Gross Pay (NMW £232.12 + DPSB £72.19)

Plus Holiday Pay Advance

50

150

FY4 5PN to PR4 2BZ

Worked more than 10hrs

22.5

70

67.5

Ref A 160

0

5000

28.00

26.64

36.73

6.82

98.19Ref B

Ref A

Ref B

562.50

160

98.19

304.31

36.73

341.04

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Getting more out of your relationship with Danbro

Danbro Financial Services

call Danbro Financial Services on 01253 600 140

Your RewardsIt pays to be a good colleagueFor every colleague or friend you recommend to us, you could enjoy the benefit of 1 monthsfree service**Terms and Conditions apply

Danbro Financial Services Ltd is an Appointed Representative of Palm Financial Care Ltd which is Authorised and Regulated by the Financial Conduct Authority. Registered O�ce: The Chambers, Britannic House, 47 Albert Road, Colne BB8 0BP. Registered Company Number 6261386.

Danbro Financial Services o�ers specialist independent �nancial advice to Danbro contractors and limited company directors.

Our aim is to guide you through the maze of �nancial services and products to help you achieve your personal goals.

We use cutting-edge award winning software to enable you to view all your investments, pensions and bank accounts in one place through your PC, laptop, tablet, smart phone or other mobile device anywhere, anytime.

So whether you want to protect your family or business, start a new pension or review your current retirement plans, save for a rainy day, invest a lump sum or you need a mortgage, Danbro Financial Services is here to help.

• Pension Planning

• Relevant Life Policies (tax-e�cient life

cover for directors)

• Business Protection

• Family Protection

• Critical Illness Cover

• Income Protection

• Private Medical Insurance

• Personal savings and investments

• Investments for companies

• Mortgages

FAQs

seem like a complicated business, but we’re here to make it all as straightforward as possible. Here are a few of the questions we are frequently asked, which should help clear up any queries you may have.

No. Under our umbrella company, you only pay our margin when we process your timesheet. There are no extra charges or clauses for you to worry about.

How will I get paid?We will process your payment on the same day that we receive cleared funds from your agency/client.

Each time you are paid, you will receive a payslip detailing your income, expenses and the appropriate deductions to arrive at your net salary. You can view your payslip through our online portal (DOTS), or alternatively we can send it via email or post.

obligated to notify Danbro. We will then issue you with a Leaver’s Pack, which

new contract.

You are also obligated to notify Danbro the moment you become aware

during your contract that the

assignment will last longer than 24 months or is becoming, or will become,

permanent employment.

Am I entitled to sick pay?Yes. As an employee of Danbro, you are entitled to statutory sick pay (SSP). If you want to claim your statutory sick pay, please contact your team on 01253 600140.

Do you pay me holiday pay?Holiday pay is included in your contracted rate at Danbro we do not hold back any of your funds. We do detail the amount you should set aside for holiday pay on your payslip for you to manage and look after yourself. As a contractor you are entitled to 20 days holiday and 8 bank holidays.

What insurance am I covered by?

•

• •

•

Yes. You have the option to attribute a proportion of your salary to be used to purchase childcare vouchers (known as

childcare voucher scheme is a tax

and could save you up to £2392* per annum on childcare costs. *subject to your circumstances.

When should I send my timesheet and expenses to you?We recommend that you submit your timesheet and expenses on the day

month. The sooner you submit the information to us, the quicker we can process your payments.

With expenses, we require you to send these to us at least 48 hours before we process your payment. Please note, some agencies have strict deadlines for payment cycles. For more information you should ask your agency or your team who will be able to clarify.

We are more than happy to provide any references on request. We provide this as part of our umbrella company at no extra charge.

Are there any set-up charges or termination clauses I should know about?

How can I check I have been paid correctly?

What happens when my assignment �nishes?

Do I have access to childcare vouchers?

£10 million in employers’ liability

insurance

£5 million public liability insurance

£5 million in professional indemnity

insurance

You are also covered by personal death &

accident insurance

When you join Danbro you will be covered by the following insurance;

Will you provide income con�rming to support credit / mortgage applications?

www.danbro.co.uk

Head O�ce: 01253 600 140 London O�ce: 0207 002 7695Jubilee House, East Beach, Lytham St Annes, FY8 5FT