Hi Guys
First time poster, so please be gentle... I looked to see if there was a more appropriate thread for this, but I couldnt see one.
Ive been contracting for 7 months now, and decided for my first contract I would go umbrella as I was very worried about the black arts of ltd company and the paper work involved.
My day rate is not particularly high, enough to fund accomodation and travel etc, but by no means reaping the benefits of high rates.
Now however, after spending lots of time trying to understand how the umbrellas pay (and failing) and also seeing a massive difference in the take home pay promised and what I actually get I am becoming more and more dissolusioned with umbrellas. I understand the majority of your take home is made up of expenses of set against tax.. so I diligently send in expenses but it doesnt seem to make that much difference.. I am still only seeing about 60 - 70% of my day rate (70% on a good pay day), one month due to poor client payments and poor umbrella admin I lost 50%.
I only have 4 months left on this contract, there may be an extension but its too early to say yet.. so I guess my question is to you guys, should I go limited and taking on the knowledge I will have to pay an accountant regardless if im in a contract or not. (I have been thinking of a managed service Churchill Knight for example), to ease the pain of company tax etc.
Or, stay umbrella but switch.. in which case do any of you guys have any recommendations please ?
First time poster, so please be gentle... I looked to see if there was a more appropriate thread for this, but I couldnt see one.
Ive been contracting for 7 months now, and decided for my first contract I would go umbrella as I was very worried about the black arts of ltd company and the paper work involved.
My day rate is not particularly high, enough to fund accomodation and travel etc, but by no means reaping the benefits of high rates.
Now however, after spending lots of time trying to understand how the umbrellas pay (and failing) and also seeing a massive difference in the take home pay promised and what I actually get I am becoming more and more dissolusioned with umbrellas. I understand the majority of your take home is made up of expenses of set against tax.. so I diligently send in expenses but it doesnt seem to make that much difference.. I am still only seeing about 60 - 70% of my day rate (70% on a good pay day), one month due to poor client payments and poor umbrella admin I lost 50%.
I only have 4 months left on this contract, there may be an extension but its too early to say yet.. so I guess my question is to you guys, should I go limited and taking on the knowledge I will have to pay an accountant regardless if im in a contract or not. (I have been thinking of a managed service Churchill Knight for example), to ease the pain of company tax etc.
Or, stay umbrella but switch.. in which case do any of you guys have any recommendations please ?
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