In 2017 the Taylor Review of Modern Working Practices was published. The following year the government published the Good Work Plan, which outlined which of the report’s recommendations.
The plan is anticipated to improve clarity for workers and employees, whilst significantly changing the enforcement landscape for those not complying.
A new section, section 13A has been inserted into The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019. From 6th April 2020 employment business will be required to issue agency workers with a Key Information document. This is in line with current processes for Opt-Out of the Conduct Regs, so agencies should be familiar with the basic requirements.
You will find below a sample summary, showing all deductions to be factored in and deducted from a typical income to the umbrella. This is just a sample, so some of the figures like the pay rate, margin and tax code may differ from what has been agreed based on your actual assignment schedule.
Example Pay Calculation in KID Format
The below shows a sample KID based on £250 per day. This breaks down all deductions you can expect to see via the umbrella from the contract rate.
The below is based on standard assumptions, so a change in personal circumstances (student loan, different tax code, different NI category, private pension payments and so on) could change the overall take home pay.
