For most people working on temporary assignments within the Public Sector, an umbrella solution is the safest and best option as it allows you to concentrate on your assignments with very little administration. 
With PSC’s umbrella solution you become an employee of PSC and you receive full UK employment rights and protection. 
PSC’s umbrella solution represents an excellent alternative to being paid on your agency’s payroll. More importantly, this option is often one of the only options available to Public Sector contractors due to the IR35 legislation introduced by the government on April 2000. 


An umbrella company acts as an employer to agency contractors who work under a fixed term contract assignment in the United Kingdom for Public Sector Authorities. Public Sector Authorities will issue contracts to Umbrella Agencies via Recruitment Agencies and as such their agency liability would be reduced, and they would not fall foul of the new implications of the IR35 legislation (explained below). Once engaged we will then pay all of the contractors through an Umbrella PAYE model. 


Umbrella companies have become more prevalent in the UK since the British government introduced IR35 legislation which creates “tests” to check the employment status of contractors or temporary workers working within the Public Sector, meaning that if you do not pass tests you must be paid via an PAYE scheme such as PAYE Umbrella. 
You will be employed under the protection of a Contract of Employment and because you will not be responsible for paying your own tax, employers NI and Employees NI, Employers NI and due to the IR35 legislation mentioned above, you are prohibited from setting up your own Limited company and you will not usually need to employ an accountant, as all of the administrative burden of paying Tax and National Insurance is removed from the contractor. 


It is also important to understand that PSC is under the full control of HMRC. The payments are done through the PAYE system using SAGE software. All hourly rates from Public Sector authorities include an uplift to incorporate items like Holiday Pay and additional Employers National Insurance. This means that you will take home as much of your pay or more than you would as a standard PAYE employee, and this includes the small margin you pay for to us for dealing with all of the administration. 
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