Pendragon Umbrella

Our team is experienced and professional and we are here to help you through every step of the process of becoming an employee of Pendragon Umbrella, right through to getting your first salary and beyond.

Contractors & Agency Workers joining Pendragon

Umbrella employment with Pendragon provides you with the security and advantages of being employed without the hassle of worrying about payroll or company accounts. You are employed under an overarching contract of employment, enabling you to work in multiple short term assignments under one tax code and via one employer. Giving you peace of mind as we take care of all the administration and providing you with great employee benefits at no cost to you.

Our commitment to you

  • We are dedicated to ensuring that our business always complies with relevant legislation
  • A personalised service provided by our dedicated relationship advisors
  • All workers are fully employed under a contract of employment
  • Paid the national minimum wage or living wage
  • Abide by the Agency Worker Regulations and adhere to AWR and WTR
  • Make all statutory deductions on all employed income
  • Only pay approved and reimbursable expenses
  • Pay accurately, on time and within the agreed SLAs with compliance at the centre of all we do

Understanding the Contract Rate or Limited Rate : What You Get Paid

As Your Employer

We will pay you after making the following deductions:

  • pay you for the work you do for the employment agency’s clients
  • deduct any Income Tax and employee National Insurance contributions due under PAYE (Pay As You Earn) from your pay (all your pay)

How does it Work?

The client you work for pays the agency for your services.

The agency deducts a fee for placing you with the client and pays the rest of the money (sometimes known as the assignment rate or the limited company rate) to Pendragon Umbrella.

This rate is different to the rate you get paid from the umbrella company, because of the additional costs for the umbrella company, which include:

  • a margin charge by the Umbrella for their services
  • employer National Insurance contributions
  • employer workplace pension contributions
  • holiday pay
  • other amounts to cover other specific costs, such as Apprenticeship Levy

The rate paid to the umbrella company by the agency will need to cover the costs of the employer National Insurance contributions. The umbrella company will use this money to pay employer contributions and not deduct the contributions from your gross pay.

The sum is your gross taxable pay including holiday pay and before deductions. Your umbrella company might be involving you in a tax avoidance scheme if any of these amounts are labelled as non-taxable. The gross taxable pay is subject to employee NIC and income tax deductions. Additional payments like workplace pension contributions may also be deducted from the gross salary. The remaining amount constitutes your net pay – the amount you take home.

Keep in mind that an umbrella company cannot deduct employer National Insurance contributions from your gross taxable pay. Contact your employer if you believe your employer’s National Insurance contributions or any additional deductions were deducted incorrectly from your pay.

If you have any concerns about a payslip from another umbrella provider your dedicated advisor will be happy to speak with you and can ask Pendragon’s specialist compliance team to check it for you and provide some basic advice on what to do to help you.

How Does the Payment Process Work


If you are a contractor or agency worker, Pendragon umbrella will pay you since we are your employer. We will compensate you for the work you do for the employment agency’s clients, deducting employee NICs and income tax under PAYE from your pay. As part of the on-boarding process you will receive an illustration detailing your pay and any deductions made to it during your employment with us. You should also receive a KID document from the agency you are working with at the time you confirm acceptance of the assignment.


The employment agency receives payment from the client for the services you provide. It will deduct a charge for placing you with the client and pay the remaining funds, also known as limited company rate or assignment rate, to the umbrella company. The umbrella company enters a contractual agreement with the agency to employ you on their behalf for the assignment.


The limited company rate is not the same as the umbrella rate because the umbrella company incurs additional costs, such as employers NIC, administration costs, holiday pay, employers pension contributions, the umbrella margin and other payments that cover other specific costs, including the apprenticeship levy. These costs are deducted before your pay is calculated and are shown on the reconciliation statement you receive with your payslip. This is required of all umbrella companies to show you and HMRC for transparency purposes.


The agency’s payment to the umbrella company must include the cost of the employer’s national insurance contributions, employers pension and the apprenticeship levy. the agency will usually provide an uplift to the rate to cover these costs and that is what is referred to as the Limited rate or Contract rate. This is not the rate you will be paid. The umbrella company will use these costs to pay over to HMRC as employer contributions and these costs will not be deducted from your gross taxable income.

Contact the Pendragon Umbrella team today to safeguard your employment rights, as we ensure compliance, transparency and a first class service

How Do I switch Umbrella Company to Pendragon Umbrella ?

There are several reasons for contractors to change umbrella company. The most common is starting a new assignment through a different agency – most umbrella companies have a working relationship with many agencies, sometimes you may need to switch in order to work through a new agency. on the on the

You may want to switch if you’ve received a poor service from your current umbrella company, to ensure you’re paid by a fully compliant, FCSA accredited organisation, get in touch.

Do you know a business, friend or colleague that could benefit from our services?

If they qualify you will be entered into our referral programme.
Refer as many friends as you like to us and receive £50 worth of Love to Shop vouchers per friend.
Referring is easy. Simply send us the contact details for your friend or colleague and we’ll do the rest. You will receive your vouchers once they have completed 12 weeks with Pendragon.
Please get in touch if you want to refer a business to our service as there’s extra information we need.

Employee Benefits just for you!

As an employee of Pendragon, you’ll be entitled to over 2,000 amazing online perks and rewards, including reloadable gift cards offering 12% cashback on everyday shopping, online vouchers and promotions giving you up to 50% of savings and high street retail vouchers offering you 10% cashback.

Pendragon has taken the time to listen to our employee’s feedback to find out what’s important to them during these trying times. As a result, we are proud to offer our all new employee benefits, focused on supporting you and your families. These include:

Over 2000 amazing online discounts and rewards.

.st0{fill:#e84e1b}.st1{fill:#e20613}24/7 GP Access

24/7 access to an online GP telephone and face to face helpline, with appointments for you and your family, online eConsultation sessions and an Electronic Private Prescription Service.

.st0{fill:#e84e1b}.st1{fill:#e20613}EAP Support

Online Employee Assistance Programme, providing immediate access to counselling, legal and financial, health and wellbeing support.

.st0{fill:#e84e1b}.st1{fill:#e20613}Fuel Cards

A BP Plus fuel card providing weekly fuel savings of up to 20p per litre each week at over 1,200 BP fuel stations across the UK and local to you.

.st0{fill:#e2de1e}.st1{fill:#e20613}Zero Extra Cost

And the best part! All of this comes at ZERO additional cost to you – because at Pendragon, we’re putting our employees first.

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