Have a look at Danbro's Umbrella starter guide...

1. Umbrella Solutions for the
contracting world
MANAGEMENT
SYSTEMS
08/1832

2. 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 responsibilities
1. 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.

3. Helping you get moreTimesheets 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 timesheets
You 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 Login
Step 3. Login to DOTS using your username and password
Step 4. Click Add New Timesheet
Step 5. Check the period ending date is correct and confirm the dates
Step 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 template
To 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 Contracts
Step 2. Select Edit Contract
Step 3. Navigate to Expense template and select Add New
Expense Template
Step 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 Changes
Step 6. You will now be able to select this template when
submitting expenses on future timesheets.
3. Submitting expenses
Having 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.

4. Helping you get more
Understanding your payslips
Each 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
1 2 3 4
5
6
87
9
10
11
12
13
14
15
16
17
18
19
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

5. 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
1 2 3 4
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15

6. Getting more out of your relationship with Danbro
Danbro Financial Services
call Danbro Financial Services on 01253 600 140
Your Rewards
It pays to be a good colleague
For every colleague or friend you recommend
to us, you could enjoy the benefit of 1 months
free 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 Office: The Chambers, Britannic House, 47 Albert Road, Colne BB8 0BP. Registered Company Number 6261386.
Danbro Financial Services offers specialist
independent financial advice to Danbro
contractors and limited company
directors.
Our aim is to guide you through the maze
of financial 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-efficient life
cover for directors)
• Business Protection
• Family Protection
• Critical Illness Cover
• Income Protection
• Private Medical Insurance
• Personal savings and investments
• Investments for companies
• Mortgages

7. 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
finishes?
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
WhenyoujoinDanbroyouwillbecoveredbythe
followinginsurance;
Will you provide income confirming to
support credit / mortgage applications?

8. www.danbro.co.uk
Head Office: 01253 600 140 London Office: 0207 002 7695
Jubilee House, East Beach, Lytham St Annes, FY8 5FT