A clear PAYE rate
Work from a fixed gross PAYE rate, giving you a clearer starting point for understanding your earnings and take-home pay.
PEO employment for contractors
What you get with Sapphire PEO
Accurate, straightforward payslips
Your tax and National Insurance are processed through PAYE, with a clear payslip showing your earnings and deductions.
Employment rights included
As our employee, you receive the statutory employment rights you’re entitled to, including holiday and pension provisions.
Payroll admin handled for you
We manage your payroll, PAYE and employment administration, leaving you with less paperwork to think about.
Continuous employment
Your employment sits with Sapphire rather than the end client, providing greater continuity as you move through your contracting career.
Real support when you need it
Have a question about your pay or employment? Speak to our team by phone, email or WhatsApp.
PEO or umbrella: what’s the difference?
Both PEO and umbrella arrangements make you an employee and pay you through PAYE. The main difference is how your pay is structured.
With PEO, you’re quoted a gross PAYE rate. The additional costs of employing you are dealt with separately between Sapphire and the recruitment agency.
With umbrella, the agency typically provides a higher assignment rate that also needs to cover the costs associated with employing you before your gross taxable salary is calculated.
Not sure which applies to your assignment? We’ll explain how you’ll be engaged and paid before you get started.
Know what you’ll take home
Are you an umbrella contractor? Enter your rate and see an illustration of your expected take-home pay, including the deductions that apply.
We’ll show you how the figures work so you can understand what you’re being paid and where your money goes.
And if you want to talk through the calculation, our team is here to help.
Sharing success
Sapphire is employee-owned, meaning when the business does well, the people who make it possible share in it – including our contractors.
Every year, we distribute a profit-share bonus to contractors who have been with us for more than a year. This year, we surpassed over £1m paid directly to longstanding umbrella contractors who helped build what we have.
£1m+
paid directly to contractors since 2021
Contractor support you can rely on
ExcellentTrustpilot rating
100,000+Contractors supported
10,000+Contractor payments processed every week
£1m+Shared with contractors
8 yearsFCSA accredited
SafeRecReal-time payroll auditing
“Sapphire is a trusted, compliance-first partner. Alex is always on hand, respectful of our preferred ways of working and quick to resolve queries and payment issues. As umbrella legislation changes, their audit-ready approach and clear, timely communication give us and our contractors real confidence.”
Sophie Anderson, Associate Director, Venn Group
Contractor tax, pay and compliance advice
Straightforward guidance on umbrella PAYE, CIS, tax, IR35, Making Tax Digital and the issues that affect your take-home pay.
Marcus Higginbottom celebrates 10 years at Sapphire – Q&A
Sapphire surpasses £1 million in contractor profit-share bonuses
New Sapphire portal gives agencies and MSPs instant payroll evidence
Sapphire Payroll Transparency Portal Q&A: evidence you can access quickly
Sapphire’s year in review: strengthening trust, unlocking ambition
Building on Trust: Sapphire Welcomes Major New Payroll Client
Ben Fitzgerald has been named Best Contractor Accountant at The Contracting Awards 2025
Sapphire wins Best Umbrella Company at The Contracting Awards 2025
Frequently asked questions
What is a PEO and how does it work?
A PEO (Professional Employer Organisation) is an employment model where a specialist company becomes your legal employer while you carry out contract work. You’re employed by the PEO, not the end client or agency, which gives you the security and rights of full employment alongside the flexibility of contracting.
Under a PEO arrangement with Sapphire, you get an employment contract, a fixed PAYE rate of pay and clear payslips, while Sapphire handles payroll, tax and employer responsibilities on your behalf.
Who employs me under a PEO arrangement?
Sapphire is your legal employer under a PEO arrangement. That means Sapphire holds your employment contract and takes on all the employer responsibilities, including running your payroll, deducting the right tax and National Insurance and providing your employment rights.
You still carry out your day-to-day work for the end client, but your employment sits with Sapphire. This gives you a single, stable employer across different contracts, which helps when you’re applying for credit with banks and lenders.
How will I be paid under a PEO?
You’ll be paid a fixed PAYE rate through Sapphire’s payroll, with tax and National Insurance deducted before your money reaches you. Each payment comes with a clear payslip, so you can see exactly what you’ve earned and what’s been deducted.
Because you’re paid PAYE as an employee, there’s no separate tax bill to manage at year end on your employment income. That gives you a predictable, transparent income you can plan around.
What employment benefits do I get under a PEO?
A PEO arrangement with Sapphire gives you enhanced employment rights, including holiday pay and pension contributions, on top of your fixed PAYE pay. You get the statutory rights and protections that come with being a full employee.
Pension contributions can be made through salary sacrifice into your private pension or SIPP, which can be a tax-efficient way to save. Being employed also gives you added security when applying for credit, as banks and lenders tend to view PAYE employment favourably.
What's the difference between PEO and umbrella employment?
Both make you an employee and pay you through PAYE, but they differ in structure. Under an umbrella arrangement, the umbrella company employs you and receives an assignment rate that covers employment costs. Under a PEO, you’re employed on a fixed PAYE rate of pay with clear payslips showing your earnings and deductions.
Not sure which route suits your contracts? Sapphire’s team can talk through both models and advise on the right fit for your situation. Get in touch by phone, email or WhatsApp to discuss your options.
Is PEO right for me as a contractor?
PEO suits contractors who want the stability of employment with less admin to manage. It’s a strong fit if you value a fixed PAYE rate, clear payslips, holiday and pension pay and the credit security that comes with being employed.
If you’d rather run your own limited company or work self-employed, a different route may suit you better. Sapphire’s team can walk you through your options and recommend the model that fits how you work. Get in touch to talk it through.
