FREQUENTLY ASKED QUESTIONS
How does a Sterling Solutions Umbrella company work?
Sterling Solutions provides an umbrella company which covers you as an employee and gives you the added benefit of receiving business related expenses. You become classed as an employee of Sterling Solutions and therefore receive full employee rights. We then sub-contract your service to the recruitment agency. To make your income more tax efficient your pay is processed based on the current National Minimum Wage. From your income we deduct our mark up and statutory employee deductions such as NIC and tax, whilst retaining holiday pay. We then calculate your business related expenses which are then added to the remainder of your wage, these are calculated tax free. Working through Sterling Solutions means you could receive your income in a more tax efficient way, compared to receiving it PAYE, thus increasing your take home pay.
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What will my employment status be while working through a Sterling Solutions Umbrella Company?
You will be classed as an employee of Sterling Solutions, and therefore eligible for Holiday Pay, SSP and other employee rights.
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Are there any set-up or leaving costs?
There is no joining, leaving, expense administration or end of year accountancy fees and no charges when you are on holiday or between contracts. Back to FAQ's
How much will it cost?
Sterling Solutions has a flexible mark up structure to compliment your income. Depending on your gross income our mark up will ‘slide’ to accommodate your working patterns to maximise your income. Our mark up ranges from £8 -23 and provides Employers, Personal Accident and Public Liability insurance as standard. Payments made by same day transfer (CHAPS) payslips and payment text messages are included at no extra charge.
There is a small administration charge for any non-standard remittances of all or part of weekly net income, e.g. payments requested by cheque. Back to FAQ's
Is there a minimum period I must work?
There is no minimum period you are obliged to work through Sterling Solutions. Back to FAQ's
How do I let Sterling Solutions know my hours worked?
The majority of agencies we work with will provide us with your hours. Please check with us beforehand if your agency provides your hours; if not, you may need to submit hours on a weekly basis direct to us. You can email, fax or phone your hours through to us before your agencies’ deadline. Back to FAQ's
How and when do I get paid?
You will receive your payment on the day we receive funds from the agency. We pay by CHAPS (same day transfer) so please be aware that the funds could show in your account any time up to your banks close of business. Please note that we cannot guarantee same day clearance on certain building society’s due to their individual CHAPS clearance methods. Back to FAQ's
What does the service include?
Sterling Solutions handles the set up and day to day administration for temporary workers in known as Umbrella Companies, including:
- Management of accounting records
- Invoicing
- Payments team
- The ability to show continuity of employment as you can stay employed with Sterling Solutions even if you change agency, assignment or work for multiple agencies
- You own personal payment clerk
- A dedicated and knowledgeable customer service team
- Same day CHAPS payments at no extra cost
- Free text alerts, confirming a payment is on its way to your account
- Accident insurance as standard
- Offshore insurance, available on request please contact the compliance department
- Free Employers and Public Liability insurance
- Sterling Solutions produces all Year End documents i.e. P60’s, P11d’s etc. All statutory deductions are made weekly so there are no hidden charges or bill at the end of the tax year. Back to FAQ's
Why should I bother with expenses?
Through Sterling Solutions you can claim back expenses related to accommodation, subsistence, professional courses, tools, business related phone calls, mileage and work clothing that are necessary for the performance of your duties on assignments. These expenses are returned tax-free and direct to you to maximise your income.Back to FAQ's
How do I submit expenses?
Claiming expenses is easy through Sterling Solutions, following a payment you will receive an expense form, complete it and return with original VAT receipts through the post - it’s as simple as that. When you claim for business expenses, our payments clerks will ensure that your claim meets the HMRC’s regulations – protecting you every step of the way. Replacement expense forms can be downloaded from our website and are available upon request. Back to FAQ's
How much can I claim in expenses?
Providing you have relevant VAT receipts as evidence to support that the claims were incurred during your employment with Sterling Solutions, there is no limit to what expenses can be claimed. Back to FAQ's
What Business Expenses can you claim for?
For more information on expense click here Back to FAQ's
What insurance cover do I have?
We provide all employees with Employers, Personal Accident and Public Liability insurance at no extra cost covering a wide range of job specifications. For offshore assignments, please contact our Compliance Department for insurance details.If you have any queries in relation to insurance, please do not hesitate to contact our Compliance Department on 0870 754 1111. Back to FAQ's
Do I get holiday pay?
When funds are received for an assignment, Sterling Solutions will retain the required percentage of holiday pay; this is accrued with each payment we receive for your services.
As a conscientious employer, we encourage all employees to take their full 24 days holiday entitlement. Normal payment terms are a week in hand and holiday pay is processed in this way. In the 10th week of your employment with us, you would have accrued the equivalent to an average weeks wage. Holiday pay can be claimed any time you wish, we do advise you request holiday pay to cover a period in which you are not working as this is financially better. If you require further information on the current holiday pay entitlement, please contact your payments clerk.
If you are ending your employment with us you must inform us as soon as possible. This will enable us to process any outstanding holiday pay and issue a P45. Any outstanding holiday pay will be paid out on 31st March. Back to FAQ's
Can I stay with Sterling Solutions if I change agency or assignment?
Yes, just give us a call to update your agency details. We work with over 1,000 recruitment agencies in the UK. Back to FAQ's
Is there a charge to change agencies?
You may change agencies as much as you like and there is no charge for this, just keep us informed on which agency you are working for.
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What happens when I work on assignments for more than one agency?
You must inform us in advance if you are working for more than one agency to ensure that the relevant details have been issued to the named agencies; this will help us avoid a delay of payments due for work done. Any second payments in the same NI week from a second agency will be subject to a £5 fee in addition to the standard weekly mark up. Back to FAQ's
What if I want to work abroad?
Before taking an assignment overseas, we would strongly advise you to contact our Compliance Department beforehand to discuss insurance, the possibility of double taxation rulings and E101 applications. The details which will be required to determine the outcome is job specification, assignment location, assignment length and the frequency of return to the UK.Back to FAQ's
How does Sterling Solutions deal with employees approaching the 40% tax bracket?
If your earnings seem to be approaching the level at which 40% tax would be applied, a warning will appear on your payslip asking you to contact us and you will then be advised accordingly. Back to FAQ's
Will I have any further tax to pay on my Sterling Solutions income?
With regard to income from a Sterling Solutions Umbrella company, if you are a basic rate tax payer then no further tax is due. If you are a higher rate tax payer, then extra tax is due on your bonus element, above the higher rate threshold. For advice on this please contact us on 0870 754 1111. Back to FAQ's
How does my payslip work?
Sterling Solutions will invoice the agency based on the hours you have worked. To maximise your pay, your income is calculated using the current National Minimum Wage. Your payslip details how your income is calculated;
• Part PAYE Wage: this section is liable for NIC and Income tax deductions
• Business expenses: These are calculated tax-free
• Holiday pay: This is retained at the current rate
• Bonus: This is liable for National Insurance Contributions (NICs) and Income Tax deductions
• Total credits to bank: This is the total sum of wages, expenses and bonus credited to your account once all deductions have been made and holiday pay retained.
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