faraway saint Posted February 2, 2019 Report Share Posted February 2, 2019 Has anyone been in the situation of being contracted and used an umbrella company? I'm about to start a 6 month contract and have been given 2 widely varying figures on net pay from 2 umbrella companies. One is considerably under what I would be earning in a normal employment situation, the other considerably above. They also don't seem to offer holiday pay, which leaves me 3 weeks with, seemingly, no pay in the 6 month period. Quote Link to comment Share on other sites More sharing options...
Svard svard Posted February 2, 2019 Report Share Posted February 2, 2019 I worked using an umbrella company not good experience wouldn't do it again.. Normally you do get paid more under them however you have no entitlement to holiday pay as you are in a roundabout way self employed and not an "employee". I only work as a LTD company now much less hassle and your more covered. I suppose it all depends on what you are doing and how much paperwork you want to do. Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 Just now, Svard svard said: I worked using an umbrella company not good experience wouldn't do it again.. Normally you do get paid more under them however you have no entitlement to holiday pay as you are in a roundabout way self employed and not an "employee". I only work as a LTD company now much less hassle and your more covered. I suppose it all depends on what you are doing and how much paperwork you want to do. Could you PM me, I'm not trusted to PM and prefer to keep some details private? Quote Link to comment Share on other sites More sharing options...
scrappy coco Posted February 2, 2019 Report Share Posted February 2, 2019 I did a few years ago for a brief spell, I'm sure an umbrella company is the finance department (wages clerk) for agencies, iirc they give you options on how you would liked to be payed, either on a PAYE basis or you can settle your own Tax/NI when doing your Tax returns, this would probably be the answer to why your figures vary so much, also I'm pretty sure they all charge a fee for processing your wages as well some a lot more than others.. Quote Link to comment Share on other sites More sharing options...
shull Posted February 2, 2019 Report Share Posted February 2, 2019 Never without my brolly. Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 22 minutes ago, scrappy coco said: I did a few years ago for a brief spell, I'm sure an umbrella company is the finance department (wages clerk) for agencies, iirc they give you options on how you would liked to be payed, either on a PAYE basis or you can settle your own Tax/NI when doing your Tax returns, this would probably be the answer to why your figures vary so much, also I'm pretty sure they all charge a fee for processing your wages as well some a lot more than others.. The 2nd quote is considerably higher than the first but, as they haven't given a detailed breakdown as yet, I can't see where the difference is coming from. You could well be right about the tax. I've e-mailed them asking for a detailed breakdown. The 1st quote are taking 2 NI amounts, one for employer and another for employee, FFS! Quote Link to comment Share on other sites More sharing options...
oaksoft Posted February 2, 2019 Report Share Posted February 2, 2019 (edited) Umbrella companies are used solely for tax dodging purposes and serve no business use whatsoever. I can't believe they have not been shut down yet. Either go Ltd Co or go as an employee. Honestly, the things people will do to try and avoid IR35 is unbelievable. Do things properly FFS. Edited February 2, 2019 by oaksoft Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 21 minutes ago, oaksoft said: Umbrella companies are used solely for tax dodging purposes and serve no business use whatsoever. I can't believe they have not been shut down yet. Either go Ltd Co or go as an employee. Honestly, the things people will do to try and avoid IR35 is unbelievable. Do things properly FFS. I start in 2 weeks and I intend this to be my only position as a contractor so going LTD isn't worth the hassle. I don't have the option to go as an employee as this was done through an agency. Who said anything about dodging tax? You are a walloper at times with your ability to jump to conclusions. Quote Link to comment Share on other sites More sharing options...
pod Posted February 2, 2019 Report Share Posted February 2, 2019 Someone recommended this one....https://www.foxumbrellas.com/ Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 Just now, pod said: Someone recommended this one....https://www.foxumbrellas.com/ My, you are a wit. Quote Link to comment Share on other sites More sharing options...
pod Posted February 2, 2019 Report Share Posted February 2, 2019 7 minutes ago, faraway saint said: My, you are a wit. Are you still in the sin bin or are you just taking a page out of shull's book. Besides, saving my money for a rainy day. Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 1 minute ago, pod said: Are you still in the sin bin or are you just taking a page out of shull's book. Besides, saving my money for a rainy day. Still in...............no idea why..........................god forbid I follow Shull in anything. Quote Link to comment Share on other sites More sharing options...
pod Posted February 2, 2019 Report Share Posted February 2, 2019 8 minutes ago, faraway saint said: Still in...............no idea why..........................god forbid I follow Shull in anything. Perhaps your humour isn't as good as it used to be. Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 4 minutes ago, pod said: Perhaps your humour isn't as good as it used to be. That just doesn't make any sense at at all. Quote Link to comment Share on other sites More sharing options...
proudtobeabuddy Posted February 2, 2019 Report Share Posted February 2, 2019 I prefer a jacket with a good hood... Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 Sincere thanks for most of the replies, especially the PM messages. Quote Link to comment Share on other sites More sharing options...
proudtobeabuddy Posted February 2, 2019 Report Share Posted February 2, 2019 5 minutes ago, faraway saint said: Sincere thanks for most of the replies, especially the PM messages. I'm glad you think a hood is preferable, thanks. Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 3 minutes ago, proudtobeabuddy said: I'm glad you think a hood is preferable, thanks. Here's a hood for you.................... Quote Link to comment Share on other sites More sharing options...
shull Posted February 2, 2019 Report Share Posted February 2, 2019 7 minutes ago, shetland said: Cheeky Bassa. He could do with copying my humour. Time Div bootit you tae feck off the Forum. Useless cnut. Quote Link to comment Share on other sites More sharing options...
proudtobeabuddy Posted February 2, 2019 Report Share Posted February 2, 2019 Just now, faraway saint said: Here's a hood for you.................... Quote Link to comment Share on other sites More sharing options...
oaksoft Posted February 2, 2019 Report Share Posted February 2, 2019 (edited) 1 hour ago, faraway saint said: I start in 2 weeks and I intend this to be my only position as a contractor so going LTD isn't worth the hassle. I don't have the option to go as an employee as this was done through an agency. Who said anything about dodging tax? You are a walloper at times with your ability to jump to conclusions. It's irrelevant how you feel about the hassle. There are legal ways to do things and there are dodgy as f**k ways to do things. Employee, sole trader, Ltd Co. Those are your choices. Pick one. Umbrella companies are a tax dodge to avoid IR35. People only use them when they know they are going to be caught by that legislation. If you use it and get caught, don't come crying to me saying I didn't warn you. Educate yourself before you start calling other people wallopers. Edited February 2, 2019 by oaksoft Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 (edited) 14 minutes ago, oaksoft said: It's irrelevant how you feel about the hassle. There are legal ways to do things and there are dodgy as f**k ways to do things. Employee, sole trader, Ltd Co. Those are your choices. Pick one. Umbrella companies are a tax dodge to avoid IR35. People only use them when they know they are going to be caught by that legislation. If you use it and get caught, don't come crying to me saying I didn't warn you. Educate yourself before you start calling other people wallopers. You are a walloper. To help you see highlighted area. You know a lot about everything and nothing, that's well documented. Now feck off, you're boring me. Edited February 2, 2019 by faraway saint Quote Link to comment Share on other sites More sharing options...
oaksoft Posted February 2, 2019 Report Share Posted February 2, 2019 6 minutes ago, faraway saint said: You are a walloper. To help you see highlighted area. You know a lot about everything and nothing, that's well documented. Now feck off, you're boring me. Good luck with the new job. Don't forget to pay your taxes like every other law abiding citizen. Quote Link to comment Share on other sites More sharing options...
oaksoft Posted February 2, 2019 Report Share Posted February 2, 2019 (edited) 14 minutes ago, faraway saint said: You are a walloper. To help you see highlighted area. You know a lot about everything and nothing, that's well documented. Now feck off, you're boring me. Seriously though, I do know what I am talking about. You may as well skim through this HMRC advice before you choose a company. If you are not Ltd Co or sole trader then by definition you must be an employee of someone. You said you are not going to be an employee so I think you need to take a moment here before you do something seriously f**king stupid. https://www.gov.uk/guidance/umbrella-companies-offering-to-increase-your-take-home-pay-spotlight-45 You will also be legally liable to tell HMRC that you are using a tax avoidance scheme such as this. That will put a red flag against your name and you risk a compliance check. This you want to avoid at all possible costs. Now if you will excuse me, I have my weekly accounts to sort out. We can't all afford accountants you know. Edited February 2, 2019 by oaksoft Quote Link to comment Share on other sites More sharing options...
faraway saint Posted February 2, 2019 Author Report Share Posted February 2, 2019 Just now, oaksoft said: Seriously though, I do know what I am talking about. You may as well skim through this HMRC advice before you choose a company. https://www.gov.uk/guidance/umbrella-companies-offering-to-increase-your-take-home-pay-spotlight-45 From the link you supplied................."Most employment agencies and umbrella companies operate within the tax rules." From your previous post...................." People only use them when they know they are going to be caught by that legislation" Can you spot the difference? Quote Link to comment Share on other sites More sharing options...
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