UK umbrella payroll software with a contractor app that does the onboarding for you
With the Nxsys contractor app, contractors onboard themselves on their phone: they verify their ID, sign their contract, upload documents and message you and their agency in one place. Behind it, Nxsys runs compliant umbrella payroll and connects to your agencies through APIs, for £1.35 per payslip.
How does umbrella payroll work?
An umbrella company employs contractors who work through recruitment agencies. The end client pays the agency, the agency pays the umbrella the assignment rate, and the umbrella runs PAYE payroll: it deducts its margin, tax, National Insurance and pension, then pays the contractor a net salary with a full payslip. Nxsys runs every step of that flow in one system.
The umbrella payroll model: one employer, full compliance and complete transparency for agencies, clients and workers. Open the full-size diagram
How does a contractor go from invite to first payslip?
Create
Your team creates the employee or contractor with their name and email address, or the agency creates a prospect in the agency portal.
Invite
You invite the contractor to onboard themselves in the app, where they complete their details, verify their ID and right to work, and sign their contract.
Work
Timesheets and remittances arrive from the agency through the API or import mapping.
Pay
Nxsys deducts your margin, processes expenses and holiday pay, checks NMW, pays the contractor and files RTI.
Stay in touch
The payslip appears in the app, and any questions go through three-way messaging.
What can contractors do in the Nxsys app?
Contractors go from invitation to ready-to-pay on their phone in minutes, without paper forms, email chains or calls to your onboarding team.
The Nxsys contractor app on iPhone and Android.
Onboard yourself
Contractors enter their personal, bank and tax details, verify their ID and right to work, and sign their contract on screen. Bank and address checks catch errors before the first pay run.
Manage your profile
Contractors view and update their own details in the app, so your team spends less time on change requests.
View your payslip breakdown
Each payslip shows gross pay, tax, National Insurance, pension and net pay, so contractors can see how their pay was worked out.
Compare your payslips
Contractors can compare pay periods and see what changed, which means fewer "why is my pay different?" calls.
Message your agency and/or umbrella
Three-way messaging puts the contractor, your team and their agency in one thread, with a full history of every pay query.
Perks and benefits
Contractors see the perks and benefits you offer in the same app they use for their payslips.
The app carries the Nxsys brand as standard. A white-label version in your umbrella's branding is available as an optional extra.
Which payroll software is best for UK umbrella companies?
Nxsys Umbrella is the best umbrella payroll software in the UK: timesheet import, gross-to-net and RTI in one pay run, a contractor app for onboarding and payslips, and one published price of £1.35 per payslip.
Why do umbrella companies choose Nxsys?
Nxsys runs umbrella payroll, contractor onboarding and accounts in one system, for £1.35 per payslip excluding VAT.
Invoice to payslip, automatically
Import agency remittances and timesheets in any layout. Nxsys maps each file once and reads it every week, then turns invoices into payslips.
Margins and holiday pay handled correctly
Nxsys deducts your margin from each assignment and adjusts it automatically where pay would fall short. Holiday pay can be Retained, Advanced, No Holiday Pay or 52 Week Average.
Compliance on every pay run
National Minimum Wage, AWR, IR35, right-to-work and Working Time checks run as part of payroll, not as a separate task.
Connected to your agencies
APIs and an agency portal give agencies the visibility they now need, with contractor status, pay and documents in one place.
One conversation, three parties
Three-way messaging connects the contractor, your team and their agency, so pay queries are answered in one thread.
Payroll and accounts in one system
Built-in sales, purchase and nominal ledgers mean umbrella payroll and your accounts run in the same software.
How does the Nxsys API connect umbrellas and agencies?
The Nxsys API lets umbrellas and agencies exchange contractor, timesheet, remittance and pay data automatically, so nobody re-keys spreadsheets.
What are agencies asking UK umbrellas for in 2026?
From April 2026 agencies share liability for their umbrellas' unpaid PAYE, so they want proof that every contractor is paid correctly. Nxsys gives you that proof from the payroll itself.
Joint and several liability
HMRC can recover an umbrella's unpaid PAYE and National Insurance from the agency that supplied the worker. Every Nxsys pay run is filed to HMRC through RTI, and agencies can see contractor pay through the portal and APIs.
Key Information Documents
Agencies must give work-seekers a KID that shows how they will be paid and what is deducted. Nxsys produces the KID in the product, and the free KID generator below shows how one works.
Try the KID generatorAWR and IR35
AWR checks run as part of payroll. Umbrella contractors are employees paid through PAYE, so IR35 does not apply to them, and tax and National Insurance come off every payslip.
Minimum wage and holiday pay
Pay is checked against the National Minimum Wage for each worker's age band, and holiday pay follows the method you choose: Retained, Advanced, No Holiday Pay or 52 Week Average.
Check the minimum umbrella rateCompliance built into every umbrella pay run
Nxsys checks each contractor's pay against National Minimum Wage, applies the correct holiday pay method and adjusts margins where needed, so every payslip can stand up to scrutiny from HMRC and your agencies. From April 2026, HMRC can recover an umbrella's unpaid PAYE from the agency that supplied the worker, so agencies are reviewing their umbrella panels and asking for proof of compliant pay.
HMRC recognised and RTI compliant
Go beyond basic RTI submissions. Nxsys integrates directly with HMRC to keep worker data accurate, compliant, and always up to date.
You can also explore HMRC’s new Umbrella Pay Calculator below.
Real-time auditing with SafeRec
SafeRec’s AI-powered auditing transforms payroll compliance, allowing you to monitor umbrella companies and supply chains in real time, giving you transparency and trust at every step.
veriPAYE's real-time diligence hub by FCSA
veriPAYE strengthens the due diligence processes you already carry out by providing you with a centralised view of payments made to your contractors and workers via your umbrellas. Reducing your costs and ensuring compliance.
Government Commercial Agency supplier
Nxsys is a supplier to the UK public sector through the Government Commercial Agency (formerly Crown Commercial Service), so public sector organisations can buy from us through a government commercial agreement.
Who does Nxsys work with?
Nxsys is built on trusted platforms and connects with pension providers, ID checks, compliance partners and the HR tools umbrella companies already use.
Give contractors an app they can onboard in
Run compliant umbrella payroll behind it, at £1.35 per payslip excluding VAT. Book an umbrella demo.
Umbrella payroll software: frequently asked questions
Want to try the numbers? Use the KID generator and umbrella rate calculator or the pricing calculator. Can't see your question? Talk to our team.
01How does umbrella payroll work in the UK?
The end client pays the recruitment agency, and the agency pays the umbrella company the assignment rate. The umbrella employs the contractor, deducts its margin, tax, National Insurance and pension, reports every payment to HMRC through RTI and pays the contractor a net salary with a full payslip. Nxsys runs every step in one system.
02What changes for umbrella companies in April 2026?
From 6 April 2026, if an umbrella company does not pay the PAYE and National Insurance due on its workers' pay, HMRC can recover it from the recruitment agency that supplies the worker to the end client, or from the end client where there is no agency. Agencies are checking their umbrella supply chains more closely as a result. With Nxsys, every pay run is reported to HMRC through RTI and agencies can see contractor pay through the agency portal and APIs.
03What is a Key Information Document (KID)?
A Key Information Document tells an agency work-seeker how they will be paid, who will pay them, what will be deducted and an example of take-home pay. Agencies must give it before agreeing terms with the work-seeker. The KID generator on this page shows an illustration; Nxsys produces the KID itself inside the product.
04Does Nxsys check National Minimum Wage?
Yes. Nxsys checks contractor pay against National Minimum Wage and National Living Wage on every pay run.
05How is the minimum umbrella rate worked out?
It is the lowest hourly assignment rate at which a contractor's pay, after your margin and employment costs, still meets the National Minimum Wage for their age band. The umbrella rate calculator on this page shows it for each margin.
06How does Nxsys help with the Agency Workers Regulations?
Under the Agency Workers Regulations, an agency worker who has been in the same role with the same hirer for 12 weeks is entitled to the same basic pay and conditions as the hirer's own staff. AWR checks run as part of every Nxsys pay run, alongside National Minimum Wage, right-to-work and Working Time checks.
07Does IR35 apply to umbrella contractors?
IR35 is about contractors who work through their own limited company. A contractor employed by an umbrella company is an employee paid through PAYE, so tax and National Insurance are deducted from every payslip and reported to HMRC through RTI.
08Which holiday pay methods does Nxsys support?
Nxsys supports Retained, Advanced, No Holiday Pay and 52 Week Average. Advanced (rolled-up) holiday pay is allowed for irregular-hours and part-year workers in leave years that start on or after 1 April 2024.
09Is there a mobile app for umbrella contractors?
Yes. The Nxsys contractor app lets contractors onboard themselves, manage their profile, view and compare their payslips, message their agency and/or umbrella, and see their perks and benefits.
10Can contractors onboard themselves?
Yes. Contractors complete onboarding in the Nxsys app, including personal and bank details, ID verification, right-to-work checks and contract signing.
11Does Nxsys have an API for umbrellas and agencies?
Yes. The Nxsys API lets umbrellas and agencies exchange contractor, timesheet, remittance and pay data automatically.
12Can Nxsys calculate umbrella margins?
Yes. Nxsys deducts your umbrella margin from each assignment and can adjust it automatically where needed.
13How much does Nxsys cost per payslip?
Nxsys costs £1.35 per payslip, excluding VAT. For example, 100 contractors paid weekly cost £135.00 a week, or £7,020.00 a year.
14Do you offer bulk pricing?
Yes. Umbrellas paying more than 250 contractors a week can get bulk pricing below £1.35 per payslip. Contact us with your weekly volumes for a quote.
15Can contractors use a branded app?
Yes. Contractors use the Nxsys app, and a white-label version in your umbrella's branding is available as an optional extra.
