Your payslip and what’s on it

Your payslip will be emailed to you (unless you have chosen not to receive it) by the conclusion of your payment day. A duplicate of your payslip will also be uploaded to the SmartPortal. This payslip offers a thorough breakdown of your payment.

We have a downloadable comprehensive guide available on this link that provides an overview of the components displayed on your payslip and the sequence in which they are deducted.

PAYE and National Insurance Bandings

To find out about the current rates and earnings thresholds for PAYE and NICs, please refer to the following HMRC links:

– England, Wales, and Northern Ireland: https://www.gov.uk/income-tax-rates
– Scotland: https://www.gov.uk/scottish-income-tax

Employment Costs – Employer National Insurance, Apprentice Levy & Employer Pension

It is essential to understand the breakdown of employment costs on your payslips and how they are calculated. When you become an employee at SmartWork, your employment is governed by a comprehensive contract that extends beyond individual assignments. This means that even after completing one assignment, your employment does not automatically terminate, as you may be assigned to different agencies.

At SmartWork, we retain the Employment Costs and a small processing margin from the Contract Income, which is the amount we receive from your agency each pay period. The remaining portion constitutes your taxable gross pay.

If you have never been paid through an umbrella company or have only received direct PAYE payments in the past, you may not have come across the term ‘Employment Costs’ on your payslip before.

When an umbrella company employs you, neither your client nor agency directly pays the Employment Costs to HMRC. Instead, the Contract Rate we agree upon with your agency covers all costs, including your basic pay, holiday pay, and our employment costs.

For more detailed information, you can refer to the HMRC website and the FCSA website.

The category ‘Employment Costs’ encompasses the following components, which will be itemized as separate lines on your payslip and deducted from our contract income. It is important to note that these costs are not deducted from your own income:

1. Employers National Insurance Contributions (Employer’s NI) – This amounts to 13.8% on income exceeding £175 per week.

2. Apprenticeship Levy – Calculated at 0.5% of your gross pay, the apprenticeship levy is a mandatory tax introduced by the UK government. Its purpose is to support the development and implementation of apprenticeship programs, with the goal of enhancing the quality of available opportunities. It is included in your rate of pay and does not directly affect you as an individual.

3. Employer Auto Enrolment pension contribution – This contribution stands at 3% of qualifying earnings, which fall between £120 and £967 per week. The Auto-enrolment pension scheme is designed to ensure that employees are automatically enrolled in a pension plan, promoting long-term financial security.

Understanding the breakdown of employment costs is crucial in comprehending your payslip and the various deductions made.

Student Loan Repayments

Which repayment plan are you currently enrolled in? The method and timing of your loan repayment will be determined by the start date of your course. The amount you repay is based on your income, not the amount you borrowed. It is important to inform your employer about your repayment plan so that they can deduct the correct amount from your salary.

Below are the two main repayment plans. For further information on student loans, such as postgraduate loans and the interest you are being charged, please visit the government’s website by clicking on this link.

Repayment Plan 1  – if you began your course before 1 September 2012.

In this case, you will start repaying your loan in April following the completion or departure from your course.

Repayments will only commence if your income exceeds the repayment threshold, which is currently £22,015 per year, £1,834 per month, or £423 per week in the UK.

If your income falls below the threshold, repayments will cease and resume once your income surpasses the threshold again.

Additionally, you have the option to make voluntary repayments to the Student Loans Company (SLC) at any time.

The repayment amount will be 9% of your income above the repayment threshold, which is currently £22,015 per year, £1,834 per month, or £423 per week in the UK. If your income changes, whether it increases or decreases, your repayment amounts will automatically adjust accordingly.

Repayment plan 2 – If your course started between 1 September 2012 and 31 July 2023

If you are a full-time student, your loan repayment will begin in April after you complete or leave your course.

For those studying a HE Short Course Loan, loan repayment will start in April after the course ends. Please contact your university or college to determine this date.

If you are a part-time student, loan repayment will commence in April after you finish or leave your course or in April four years after the course start date (whichever comes first), even if you are still studying.

Repayments will only begin if your income exceeds the repayment threshold, which is currently £27,295 per year, £2,274 per month, or £524 per week in the UK. If your income falls below this threshold, repayments will cease and resume only when your income surpasses the threshold again.

You can make additional voluntary repayments to SLC at any time.

The repayment amount will be 9% of your income above the repayment threshold, which is currently £27,295 per year, £2,274 per month, or £524 per week in the UK. If your income changes, whether it increases or decreases, your repayment amounts will automatically adjust accordingly.