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    Default Umbrella Companies: New to contracting

    Hello,

    I am new to this forum, I have been reading through the forums and decided I need to post.

    I am due to start work next week and have registered with an Umbrella Company, this is the first time I've used them and have to say after reading through some of the posts on this forums it has saved me from making a possibly huge mistake.

    The company I signed up with have added around 194.05 worth of fees per week. My daily pay will be 121 and the illustration I have been given is:

    Your net weekly salary: 457.91
    Weekly Personal Mitigation Fund: 34.55

    I think the company have inflated the figures a bit, I have registered with them today but quite sure that I do not have a leaving fee.

    Does those figures look correct?
    Will the net be less if I do not have these expenses which I wont have?

    Many Thanks,

  2. #2

    Umbrella Queen

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    This is a calculation based on 810L tax code and assuming that you have no expenses:

    Monthly Weekly

    Income 605.00
    Expenses 0.00



    Employer's NI 52.33
    Employee's NI 45.50
    Employee Tax 73.35
    Total All Tax 171.18
    CU Margin 27.50
    Total Net Income 403.76

    Do you have a breakdown of the calculation from your umbrella company - it is possible that an amount has been included for expenses that you are not actually entitled to claim or, alternatively if this is a calculation based on specific information, it may be that you are not working on a standard tax code or you have missed pay periods.
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    Default

    Thank you for you reply,

    They advised of 100 mileage and 94.05 food?

    Many Thanks
    Hussain

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    Quote Originally Posted by HussainRaza View Post
    Thank you for you reply,

    They advised of 100 mileage and 94.05 food?

    Many Thanks
    Hussain
    So, would you be travelling 220 miles each week and spending 18+ per day on food?
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    Default

    Noo LOL

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    Quote Originally Posted by HussainRaza View Post
    Noo LOL
    Then the calculation you have been given is totally incorrect and if they do put through those expenses without you having incurred them you will be in dead trouble with HMR&C. If the umbrella company was recommended to you it may be an idea to let the recommender know
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    Default

    Thank you, you've been very helpful.

    I noticed you work for an umbrella company, would I be able to get an illustration?

    Many Thanks

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    Quote Originally Posted by HussainRaza View Post
    Thank you, you've been very helpful.

    I noticed you work for an umbrella company, would I be able to get an illustration?

    Many Thanks
    See illustration above - if you let me have a note of any expenses that you will actually incur and confirm that you are intending to work on more than one assignment as a contractor working through an umbrella company and I will post a revised calculation for you
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    Hi Lisa,

    Sorry for hijacking this thread.

    I'm due to start a contract on May 7th and was considering going with CU.

    My daily rate is 150 p/day
    Expenses Approx 160 p/week.

    Can you give a break down on my take.

    Thanks

    Kevin

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    Quote Originally Posted by kevinm3 View Post
    Hi Lisa,

    Sorry for hijacking this thread.

    I'm due to start a contract on May 7th and was considering going with CU.

    My daily rate is 150 p/day
    Expenses Approx 160 p/week.

    Can you give a break down on my take.

    Thanks

    Kevin
    Hi Kevin,

    No problem - happy to help This is the calculation that you asked for:

    Monthly Weekly

    Income 750.00
    Expenses 160.00



    Employer's NI 50.14
    Employee's NI 43.60
    Employee Tax 65.64
    Total All Tax 159.38
    CU Margin 27.50
    Total Net Income 560.52

    HTH
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