Our Seals of
Approval
At Magic Umbrella, we are setting new industry standards.
Our Professional Passport Umbrella accreditation is a testament to our commitment to compliance, transparency, and client satisfaction. This golden seal of approval sets us apart from our competitors.
What does this mean for your recruitment business?
- Peace of mind: Our accreditation ensures you operate within the highest legal and ethical standards.
- Enhanced reputation: You are partnering with a trusted and respected umbrella company.
- Streamlined operations: Benefit from simplified payroll and compliance procedures.
- Attracting top talent: Our commitment to compliance and employee well-being, including ensuring contractors are paid no less than the equivalent PAYE rate, helps you attract and retain the best contractors.
With Magic Umbrella, you’re not just choosing an umbrella company but partnering with a visionary organisation committed to empowering your business!
Compliance, The Magic Way
In the fast-paced world of recruitment, compliance is more than just a box to tick. It’s the magic ingredient that ensures an efficient, secure, and legally sound operation. At Magic Umbrella, we don’t just meet compliance standards – we exceed them.
We understand that steering the complex regulatory landscape is challenging and requires expert know-how, and so we’ve made it our mission to simplify the process and provide you with peace of mind.
Agency Workers Regulation (AWR)
This legislation came into force on 1 October 2011 to ensure that the working and employment conditions of contractors and freelancers engaged through recruitment agencies are no different from a ‘comparable worker’. The Regulations give agency workers the entitlement to the same treatment as a full-time employee doing the same job in the same workplace and working conditions if they complete a qualifying period of 12 weeks in a particular job. The entitlements cover basic pay, bonuses, working time, holiday and additional leave entitlements and benefits, including pregnancy/maternity and other human employment rights protection.
Repeal of the Swedish derogation:
From 6 April 2020, a permanent contract giving pay between assignments no longer allows a worker to opt out of equal pay entitlements. All agency workers are entitled to the same pay as permanent employees of the hirer after twelve weeks in the same role with the same hirer.
What we do
Unfolding employee benefits:
Magic Umbrella simplifies tracking the employee’s 12-week qualifying period for agency work. We send you friendly reminders as you approach the mark, ensuring you receive the full entitlements you deserve. With Magic Umbrella, equal treatment and benefits are clear and accessible.
Agency Workers Regulation aspects you should be aware of as a contractor
Working Time Regulations
The Working Time Regulations 1998 cover the following working time entitlements: duration of working time, night work, holiday entitlements, rest periods, and breaks. In addition to existing rights, after 12 weeks in a given job, an agency worker will be entitled to the same terms and conditions relating to the duration of working time, night work, rest periods and rest breaks, annual leave, and be paid at the appropriate overtime rate as he or she would have received as a direct employee.
What we do
Managing your work hours:
Magic Umbrella tracks your working hours to ensure compliance with Working Time Regulations. We help you manage your time efficiently, making sure you receive the rest breaks and maximum working hours set by law.
Holiday Pay Entitlement
In relation to paid holiday leave, all workers have a statutory entitlement to 5.6 weeks per year (based on their working pattern – somebody working five days a week is entitled to 5.6 x 5 = 28 days), which can include bank and public holidays. As with rest breaks, if a hirer would have given a more generous contractual leave entitlement to the agency worker if recruited directly to fill the same job, the agency worker concerned should receive the same enhanced entitlement once the 12-week qualifying period has elapsed.
What we do
Maximising your time off:
Magic Umbrella tracks and calculates your holiday pay entitlement accurately, ensuring you receive your due benefits. We make it easy for you to request and manage your holidays, ensuring compliance with statutory requirements.
Employment
Intermediaries’
Legislation
Introduced in April 2014, with the reporting function operational as of April 2015, it centres on whether someone who operates through an intermediary is genuinely self-employed. The intermediary is responsible for reporting to HMRC each quarter on how each worker is engaged, be it PAYE, on a self-employed basis, or through a PSC. Since heavy fines exist for those who don’t report this information accurately, compliance with this specific legislation is vital to ensure workers’ taxes and National Insurance are paid correctly.
What we do
Extra assurance and peace of mind:
Magic Umbrella is your recruitment agency’s secret weapon to a compliant contracting journey. We double-check everything to ensure compliance with the regulations so you can focus on what matters most—your hiring triumph! Think of us as your compass, navigating the ever-changing landscape of self-employment regulations.
Right To Work
(RTW) Checks
Right to Work (RTW) checks are legal checks employers in the UK must perform to confirm that job applicants have the legal right to work in the UK. Employers must verify documents (such as passports or biometric residence permits) or use the UK government’s online RTW checking
service. Checks must occur before employment begins to avoid penalties, and certain roles may require periodic re-verification.
What we do
Effortless Right to Work compliance:
Our umbrella company lifts the burden and any costs associated with Right to Work checks, ensuring contractors meet UK compliance standards with ease. We handle all eligibility verification, documentation, and ongoing monitoring, so you’re fully covered without the hassle. Rely on us for a streamlined, compliant contracting experience, from start to finish.
National Insurance
Contributions (NICs)
Typically, ‘employment costs’ refer to Employer’s National
Insurance Contributions (NICs) and the Apprenticeship Levy, which is calculated at 14.3% (after allowances). While the processes involved are relatively straightforward, one of the biggest challenges in payroll processing procedures is the deductions on payslips in a compliant and efficient way. Just like all employers, Umbrella Companies are legally obliged to automatically calculate the National Insurance Contributions (NICs) you need to pay and deduct them from your paycheck before passing on your take-home pay.
What we do
Simplifying NICs:
Being paid through Magic Umbrella ensures accurate calculation and timely submission of National Insurance Contributions for all contractors. We keep track of rate changes and regulations to maintain compliance and provide peace of mind.
IR35 Compliance
HMRC introduced new processes for IR35 in 2012. Understanding off-payroll working (IR35) rules for clients, workers (contractors), and their intermediaries is critical for tax compliance. Although the rules are unlikely to apply if an umbrella company employs you, some clients may assess whether they apply to the role. These rules apply when workers contract through their limited company or an intermediary.
What we do
Navigating IR35? We’ve got you covered:
We’ll guide you through the necessary payroll procedures and any potential changes to your tax obligations. We simplify the process, ensuring you have a clear understanding.
Auto-Enrolment
and Pensions
The “Auto-Enrolment and Pensions” initiative in the UK is primarily governed by the Pensions Act 2008 and subsequent related legislation, including the Pensions Act 2011. In October 2012, the UK government began phasing inauto-enrolment for workplace pensions. Employers had to adapt to new administrative responsibilities as auto-enrolment required employers to automatically enrol their eligible employees into a qualifying workplace pension scheme and making contributions towards it. Overall, the changes in 2012 represented a significant shift in the UK’s approach to retirement savings, aiming to improve financial security for future retirees.
What we do
Secure your future:
Magic Umbrella assists you closely with the auto-enrolment process, ensuring all eligible workers are enrolled in a compliant pension scheme. We handle the administrative burden and ensure timely contributions, helping you plan for a secure retirement.
Equality Act 2010
Compliance
The Equality Act 2010 protects people from unfair treatment and discrimination in the workplace and creates a more equal society. It brings together in one single Act a range of anti-discrimination laws passed over the last 40 years to help people understand their rights and challenge discrimination while strengthening protection in some situations. It sets out the different ways it’s unlawful to treat someone.
What we do
Staying compliant:
Magic Umbrella monitors legal changes closely, keeping you informed. We aim to promote compliance from the start, avoiding any enforcement issues. We provide the necessary support to ensure that individuals and businesses we work with understand and follow the law, including the Equality Act 2010. We simplify compliance so you can focus on what matters most.
Data Protection Regulations
Under UK law, the UK General Data Protection Regulation (UK GDPR), in conjunction with the Data Protection Act 2018 (DPA 2018), governs the lawful, fair, and transparent processing of personal data for businesses. These regulations mandate that organisations collect only necessary data, securely process it, ensure its accuracy, and retain it solely for the legally required duration. Data subjects hold specific rights, including the rights to access, rectify, or delete their data under certain conditions. Non compliance can result in significant penalties, emphasising the importance of responsible data management and adherence to these regulations.
What we do
Your Data, Our Priority:
We have implemented robust data protection policies, conducted regular data protection impact assessments (DPIAs), and established efficient protocols for handling data breaches, including notification to the Information Commissioner’s Office (ICO) where required. Personal data is stored securely and managed according to the implemented strict policies, with no sharing with third parties unless you provide explicit consent. We guarantee that your data remains confidential, with
transparency on how it’s used, so you’re always informed and in control.