My agency has just informed me that on 6th of April im likely going to have to use an umbrella company for the public sector contract ive just started. In a nutshell, I like this contract because its a good rate and local. Ive been looking into it and out of a weekly earning of £1100, various umbrella companies are offering me take home pay of between £680 and £730.....to say I was shocked when I seen these figures is an understatement, apparently I cant claim much in the way of expenses. I knew i would take a drop in pay but was realistically expecting at least to take home £850, but they are going to be taking around £400 a week off my earnings!!!, does anyone know of any alternatives to this? or any way around it? it just seems absolutely ridiculous that im being stung with tax, ni and employers ni to the tune of £400 per week! seems far too high.
At the moment im thinking of looking for a new contract in the private sector or going perm, because I could probably get a perm job on only a few hundred quid less than that per month and get the benefits of holidays & sick pay.