{"id":7062,"date":"2021-04-15T12:11:06","date_gmt":"2021-04-15T12:11:06","guid":{"rendered":"https:\/\/coolcompanydev.staging.wpengine.com\/uk\/?post_type=blog&p=7062"},"modified":"2023-09-15T11:54:34","modified_gmt":"2023-09-15T11:54:34","slug":"umbrella-company-margin","status":"publish","type":"blog","link":"https:\/\/coolcompany.com\/uk\/blog\/umbrella-company-margin\/","title":{"rendered":"Umbrella Company Margin, but what does it mean?"},"content":{"rendered":"\n
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Umbrella Company Margin, but what does it mean?<\/h1>\n\n\n\n

For many years those new to the umbrella company payroll solution have struggled to understand the way it works and the structure of the Margin taken by the umbrella company on the payslip. Well, today, I will give you a peek behind the curtain and explain the pricing in simple terms. Oh, and I will also cover the benefits too!<\/p>\n<\/div>\n\n\n\n

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\u201cNow the industry operates a volume-based business model, which helps keep the Margin amount small.\u201d<\/strong><\/p>\n<\/blockquote>\n<\/section>\n\n\n\n

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Let\u2019s start with the most confusing word and the one least explained online Margin!<\/p>\n\n\n\n

What is Umbrella Company Margin?<\/strong><\/h2>\n\n\n\n

An Umbrella Company Margin refers to the amount the Umbrella Company retains to cover the cost of administration. This margin is retained for the invoice your client pays.<\/p>\n\n\n\n

It\u2019s an administration cost and it covers the cost of running the payroll and the cost of insuring your work with the client your supplying services too, plus all the other operational costs associated with running a business. Now the industry operates a volume-based business model, which helps keep the Margin amount small. Therefore, a successful umbrella company needs many customers to remain profitable.<\/p>\n\n\n\n

Universally the Margin is taken before tax, meaning that in purely mathematical terms you don\u2019t actually pay the full amount advertised. It will cost you anywhere between 20% or 40% less depending on your tax rate.<\/p>\n\n\n\n

What margin does Cool Company charge?<\/strong><\/h3>\n\n\n\n

Cool Company has two options when it comes to Margin. These are based on the frequency of the payment you receive. If the payment is weekly we will deduct \u00a322.50, if it\u2019s a monthly schedule, then it\u2019s a flat \u00a380 per payment.<\/p>\n\n\n\n

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Does Cool Company charge any hidden costs?<\/strong><\/h3>\n\n\n\n

While margin should be umbrella companies\u2019 main source of income, some Umbrella companies have additional costs that could have an impact on your take-home pay. We do not charge any hidden costs, such as, sign upp fees, exit fees, surcharges for insurance or processing expenses.<\/p>\n\n\n\n

For this, you receive all these benefits!<\/p>\n\n\n\n