Agency FAQs Looking for Contractor FAQs instead? Contractor FAQs > Umbrella Self-Employment and CIS PSC & IR35 Compliance and Due Diligence Agency Processes Do you have an example PAYE umbrella payslip? Yes. Please click here to view an example PAYE umbrella payslip. Is a take-home pay calculator available? Yes. Please contact your Account Manager for our latest take-home pay calculator. Calculations are illustrative and actual take-home pay will depend on individual circumstances. How does holiday pay work? PAYE umbrella employees are entitled to statutory paid annual leave. As standard, SB Pay calculates holiday pay at 12.07% of the worker’s hours worked and pays this alongside their weekly pay. Workers also have the option to have their holiday pay retained by SB Pay and paid when they take annual leave, rather than receiving it each week. Workers are provided with information regarding their holiday pay arrangements as part of the onboarding and employment process. How does Statutory Sick Pay work? As the employer, SB Pay is responsible for assessing eligibility and administering Statutory Sick Pay (SSP). From 6 April 2026, eligible employees can receive SSP from their first full qualifying day of sickness, at 80% of average weekly earnings or the applicable statutory rate, whichever is lower. How does workplace pension auto-enrolment work? SB Pay operates a three-month postponement period. At the end of this period, employees are assessed and, where eligible, automatically enrolled into the workplace pension scheme. Employees receive the appropriate statutory communications and retain their right to opt out following enrolment. Who provides the Key Information Document? SB Pay prepares the Key Information Document (KID) and sends it to the agency for onward issue to the worker. Agencies should notify SB Pay of any material changes so that an updated KID can be prepared where required. How does SB Pay manage Agency Workers Regulations (AWR) compliance? SB Pay monitors PAYE umbrella employees for AWR purposes and contacts agencies at key stages to obtain relevant comparator information. Where the 12-week qualifying period is reached and an adjustment is required, SB Pay works with the agency to ensure the appropriate changes are made. A further review is undertaken at 12 months. What is the Self-Employment Status Assessment? Our Self-Employment Status Assessment reviews whether the contractual arrangements and actual working practices support self-employed status. The assessment must be completed before an individual can be approved for self-employed engagement. SB Pay reviews each assessment and determines the appropriate engagement method. What happens if SB Pay does not consider a worker eligible for self-employment? SB Pay may contact the worker to clarify their responses and, where appropriate, allow a second and final assessment. If the requirements are still not met, the individual will not be engaged as self-employed for that assignment and may instead be offered our PAYE umbrella service. Can an agency request that a worker is engaged as self-employed? An agency can refer an individual for consideration; however, SB Pay must be satisfied that the contractual arrangements and actual working practices support self-employment. Where the requirements are not met, an alternative engagement method will be required. How are CIS deductions applied? Where an individual is genuinely self-employed and falls within CIS, SB Pay verifies their UTR with HMRC and applies the returned deduction rate – normally 20%, 30% or 0% for Gross Payment Status. CIS tax treatment does not, by itself, determine employment status. How does SB Pay determine whether an assignment falls within CIS? Where an individual believes their role falls outside CIS, they should notify SB Pay and, provided their UTR has not already been verified under CIS, complete our assessment form. Where our Compliance Team considers the role may fall outside CIS, the agency will also be asked to confirm the role and duties before the appropriate treatment is confirmed. Does SB Pay engage workers through Personal Service Companies? Yes, subject to the proposed assignment meeting our onboarding, compliance and IR35 requirements. PSC engagements are assessed separately from PAYE umbrella and self-employed engagements. Does SB Pay have insurance relating to IR35? Yes. SB Pay has IR35 Feepayer Protect insurance. Further information and evidence of cover can be provided as part of our due diligence process. What insurances does SB Pay hold? SB Pay’s insurance programme includes Employers’ Liability (£10m), Public and Products Liability (£5m), Professional Indemnity (£1m), Cyber and Data Risk (£1m), IR35 Feepayer Protect, NIC Losses Insurance and Drivers’ Negligence cover. Cover is subject to applicable policy terms, limits and exclusions. Certificates are available through our Due Diligence Pack or on request. Where can I obtain SB Pay's due diligence information? Our Due Diligence Pack contains key company information, insurance documentation, certificates, policies, procedures and details of our compliance and payroll processes. Please contact your Account Manager to request the latest version. How does SB Pay support agencies under the PAYE rules for umbrella labour supply chains? SB Pay supports agency partners by providing appropriate payroll, compliance and due diligence information to assist with their supply-chain assurance obligations. Agencies should continue to maintain their own appropriate due diligence procedures and statutory compliance. Who is responsible for Right to Work checks? SB Pay undertakes appropriate Right to Work checks for individuals it engages. Individuals must provide the required information and documentation before their registration and engagement can proceed. Agencies should continue to comply with any separate obligations applicable to them. What happens if a worker cannot demonstrate a valid Right to Work? Their registration or engagement will be placed on hold and they cannot be engaged or paid by SB Pay until the relevant Right to Work requirements have been satisfactorily completed. Can SB Pay assist with agency or end-client audits? Yes. Our Due Diligence Pack contains many of the documents routinely requested during audits, and our Compliance Team can assist with reasonable additional requests. What information does SB Pay require when an agency refers a worker? Agencies should provide accurate worker and assignment information, including the role and duties, end client, location, start date, rate, working hours and payment arrangements. Additional information may be required depending on the engagement type. What should an agency do if an end client requests compliance documents relating to SB Pay? Please refer the request to your Account Manager or our Compliance Team, who can provide the appropriate documentation and information. Who should I contact if I need further information? Your Account Manager should be your first point of contact. Specialist queries can be referred to our Compliance Team where required.