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Umbrella confusion!!!!!!!

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    Umbrella confusion!!!!!!!

    Hello all,

    Very new to this and the contractor environment, I work freelance via an agency was approached by a few umbrella companies, one being Extra, and what appears to be a subsidiary, Winchester (?). After researching, and using this forum as a really useful source of info, I understand they base there payment structure around loans in order to avoid paying 100% tax or at least less, which sounds more than a bit dodge. So I sacked that idea and went looking around including the AUCAE consortium.

    I looked at their advice and I made a decision to go with a company who are able to offer more money, as they operate in a slightly different way to others umbrella companies as well as providing accounting for limited companies etc.

    I was advised at the time of joining that the AUCAE is a monopoly of umbrella companies that are pretty fixed and rigid in terms of the way they represent their contractors.

    Would anyone have any advice? As to be fair, I cant be bothered with the uncertainty and worry that I may be liable for doing something wrong, after what i consider to be a fair amount of due diligence researching etc, and may end up just setting up my own ltd company with an accountant to avoid the nonsense etc.

    Also is there ANY objective sites, forums etc that offer impartial reviews of umbrella companies? As each area I've researched is either clearly set up for a group of companies’ advertisement purposes or a collective group of companies with a different set of agendas.

    Many thanks.

    #2
    Ah, Winchester...

    http://forums.contractoruk.com/hmrc-...ection-9a.html
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

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      #3
      And as for advice by punters who have used many non-AUCAE umbrellas, have a look here...HMRC Scheme Enquiries

      AUCAE is NOT a consortium, the members follow HMRC guidelines and are rigid for a reason - they'll let you sleep at night, and what price is that?
      "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
      - Voltaire/Benjamin Franklin/Anne Frank...

      Comment


        #4
        and using this forum as a really useful source of info, I understand they base there payment structure around loans in order to avoid paying 100% tax or at least less, which sounds more than a bit dodge.
        I'm a little surprised if you've used this forum for research that the conclusion you've come to is only 'more than a bit dodgy' to be honest.

        as they operate in a slightly different way to others umbrella companies
        and also if you researched this forum I find fact you are even entertaining a company 'that works slightly differently to normal' utterly astounding.

        Why not just go with a bona fide market leading company like Contractor Umbrella. They've been around for a very long time and were instrumental in setting up AUCAE (check the address at the bottom of the website!). Great service, all above board, plenty of sleep at night. Lisa, the previous MD and Lucy the new one post on here regularly and have done for many years so they are hardly gonna do a bunk on you.
        Last edited by northernladuk; 27 July 2016, 16:47.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          If it sounds too good to be true, it generally is.
          The greatest trick the devil ever pulled was convincing the world that he didn't exist

          Comment


            #6
            Originally posted by LondonManc View Post
            If it sounds too good to be true, it generally is.
            That's what clients think after my interview and are overjoyed to find there are exceptions to that rule
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by Gandy View Post
              Hello all,

              I was advised at the time of joining that the AUCAE is a monopoly of umbrella companies that are pretty fixed and rigid in terms of the way they represent their contractors.

              Would anyone have any advice? As to be fair, I cant be bothered with the uncertainty and worry that I may be liable for doing something wrong, after what i consider to be a fair amount of due diligence researching etc, and may end up just setting up my own ltd company with an accountant to avoid the nonsense etc.
              Hi Gandy, AUCAE was set up to highlight the companies that were working within guidelines provided by HMRC. Althought HMRC will not approve any company (contrary to what some companies say), they did comment on the compliance manual that our ex HMRC tax inspector helped us put together, which is a massive step in the right direction.

              Anyway if you want to stay safe, whether it is with CU or another company, then the best advice I can give is to make sure that 1. you call them to discuss how it works and 2. that they explain it in detail without any enticing offers to sign up! The number of times we take calls from contractors who have ended up dissappointed by the time they receive their first payslip is unreal!

              Finally look at it realistically, if you are a 40% tax payer and they offer you 80% take home then ask them where the other 20% is going and see what they come back with - it's not rocket science

              Comment


                #8
                251 for a day's work. 65 pound paid by the umbrella, whistles off to the accountant....

                Is the industry regulated? Apart from other members of the industry.

                Comment


                  #9
                  Originally posted by Gandy View Post
                  251 for a day's work. 65 pound paid by the umbrella, whistles off to the accountant....

                  Is the industry regulated? Apart from other members of the industry.
                  £65/£251x100 = 25.89%, so you have 74.11% income. That's pretty darn good for an umbrella.

                  They aren't regulated but the AUCAE brollies follow HMRC guidance which is as good.

                  And don't think that accountants are free, they'll cost you £60 - £100pm


                  PS
                  Oh, and make the most of it - in April 2017 almost all contractors will probably have to be inside IR35 and pay PAYE - So your £65 will probably go up to £87pd whether you are with an umbrella or an accountant.


                  But you're not a contractor for the money, are you - you love the lifestyle, the freedom, being your own man! So it won't matter that you'll have to pay 35 - 40% tax.

                  Take a look here if this is news to you... http://forums.contractoruk.com/accou...inly-dont.html
                  "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                  - Voltaire/Benjamin Franklin/Anne Frank...

                  Comment


                    #10
                    Originally posted by cojak View Post
                    £65/£251x100 = 25.89%, so you have 74.11% income. That's pretty darn good for an umbrella.
                    Darn. I need to check my numbers. Am sure I'm not too far off that through a LTD....
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

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