Umbrella PAYE

The compliant, flexible way to pay your workforce

Mink's Umbrella PAYE service puts your workers on our payroll — giving them full employment rights, benefits, and peace of mind, while you stay 100% compliant with HMRC.

Get started today How it works

What's included with Umbrella PAYE

✓ Full PAYE employment contract
✓ Tax and NI deducted at source
✓ Holiday pay accrual (Working Time Regulations)
✓ Workplace pension auto-enrolment
✓ Allowable expense claims
✓ Statutory sick, maternity & paternity pay
✓ Weekly SMS payslip updates
✓ Full RTI submissions to HMRC
✓ Same-day BACS payments
✓ Dedicated payroll support team

Explained

What is an Umbrella Company?

An umbrella company is a PAYE employer that sits between a recruitment agency and a temporary or contract worker. When a worker is engaged through Mink's umbrella service, we become their employer of record — handling all payroll, tax, and compliance obligations on your behalf.

The agency or end-client pays Mink an agreed rate. We then process the worker's pay through PAYE, deducting income tax and National Insurance contributions accurately, before paying the worker their net take-home.

For workers, it means full employment rights, a continuous employment record, and access to statutory benefits — without the complexity of running their own limited company. For agencies and businesses, it means zero payroll risk and complete HMRC compliance.

How the money flows

End Client / Agency

Pays Mink the agreed contract rate for the worker's services.

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Mink processes payroll

We calculate tax, NI, pension, holiday pay and statutory deductions. RTI submitted to HMRC.

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Worker receives net pay

Same-day BACS payment with a full payslip and deduction statement. No surprises.

Why choose Mink Umbrella

Everything a worker needs, handled for you

Our umbrella service is designed to be genuinely fair for workers and genuinely simple for businesses. Here's what comes as standard.

Full Employment Contract

Every worker receives a formal employment contract with Mink as their employer. Clear terms, proper rights, full legal compliance.

Tax & NI Handled Correctly

Income tax and National Insurance are deducted at source on every pay run. Workers never receive a surprise tax bill.

Holiday Pay Accrual

Workers accrue 12.07% holiday pay in line with the Working Time Regulations 1998. Fully compliant, properly tracked.

Workplace Pension

Workers are automatically enrolled into a qualifying pension scheme, with employer contributions included in every pay run.

Allowable Expenses

Eligible workers can claim tax relief on genuine business expenses such as travel between sites, improving their net take-home pay.

Statutory Benefits

Statutory Sick Pay, Statutory Maternity Pay, and Statutory Paternity Pay are all managed through Mink — workers are protected.

Weekly SMS Updates

Workers receive a weekly SMS confirming their pay details — keeping everyone informed without the need to chase.

Detailed Payslips

Clear, itemised payslips showing every deduction. Workers always know exactly what they've earned and what's been deducted.

Same-Day Payments

We process BACS payments on the same day as funding, so workers are never left waiting for money that's already been sent to us.

Who benefits

Designed for workers and agencies

Umbrella PAYE through Mink works seamlessly for everyone in the supply chain.

For Workers

Peace of mind, every payday

No need to run a limited company or submit self-assessment returns
Genuine employment rights and a continuous employment record — useful for mortgages and loans
Access to holiday pay, sick pay, and maternity or paternity pay
Workplace pension contributions included — saving for your future
Claim eligible travel and business expenses to increase take-home
Transparent payslips every week — no surprises, no confusion
Dedicated support team to answer any payroll question quickly

For Agencies & Businesses

Zero payroll risk, total compliance

We become the employer of record — you have no PAYE liability
Full RTI submissions to HMRC on every pay run, correctly and on time
Onboarding handled by Mink — workers set up quickly with minimal input from you
Simple, consolidated invoicing — one payment to Mink covers everything
Compliant with IR35 off-payroll working rules when workers operate through us
Flexible — works for weekly, fortnightly, or monthly pay cycles
Trusted by 500+ UK businesses across recruitment, construction, healthcare and more

Is Umbrella PAYE fully HMRC compliant?

Yes. Mink's umbrella service operates entirely within HMRC's rules. We use HMRC-recognised payroll software, submit RTI filings on every pay run, and operate with full transparency. There are no disguised remuneration schemes or tax avoidance arrangements — just straightforward, compliant PAYE employment.

How is an umbrella company different from a limited company?

With a limited company, a contractor is a director and shareholder responsible for their own accounts, VAT registration, corporation tax, and annual filings. With an umbrella, Mink is your employer — we handle all tax and NI deductions, and you don't need to worry about running a company. It's simpler, safer, and fully compliant.

What happens to my holiday pay?

Holiday pay is accrued at 12.07% of your gross pay in line with the Working Time Regulations. It is clearly shown on your payslip. You can choose to have it paid out weekly alongside your regular pay, or to roll it up and claim it when you take time off.

Can I claim expenses through umbrella?

Yes, subject to HMRC's rules on allowable expenses. Workers who are not subject to Supervision, Direction, or Control (SDC) at their workplace may be able to claim travel and subsistence expenses. We'll advise you on what's eligible during onboarding. Expenses must be genuine business costs — we never operate non-compliant expense schemes.

How quickly can workers be set up?

Most workers are onboarded and ready for their first pay run within 24–48 hours of providing their details. We handle the process personally — reaching out to workers directly to collect ID, tax codes, and bank details so you don't have to chase anything.

Does umbrella work alongside IR35 rules?

Yes. Umbrella PAYE is often the preferred solution where an engagement falls inside IR35, as the worker is already employed through PAYE and there is no off-payroll working issue. We can advise on how umbrella fits within your specific IR35 obligations.