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  1. #1

    Still gathering requirements...


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    Question What is Uplifting? and how would it/should work?

    What does this *actually* mean?

    So an agency has found me a potential offer that requires me to find an umbrella [initial short term 3 months] if the interview goes well. Well an all day on the job interview.

    Ironically, if the client wants me, I will get paid for that day.

    This would be my first umbrella if successful and was wondering that we [me and agency] have agreed a rate [130pd (outside London and local to me)] but no uplift has been mentioned.

    Should I go back to the agency and inquire about any uplift and what should I be looking for on top of the above rate?

    I have done the calcs on take home via JSAGroup and ContractorUmbrella and [nearly in the past got sucked into a contract with Parasol - which I turned down thankfully] are happy with the rates etc, but more return would be nice.

    But typically what argument/discussion should I have with the agency regarding uplift?

    any advice welcome -

  2. #2

    Umbrella Queen

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    An uplift refers to an increase in daily rate if you work with an umbrella company rather than being employed directly by the recruitment agency. If you are paid direct by the agency they take on all the employer's legal responsibilities (employer's NI, statutory payments etc) and therefore your daily rate will be lower than if you work with an umbrella company who will fund these responsibilities from the contract rate.

    With regard to rate negotiation - I am sure others on here will be able to advise you better than I can - I would suggest that you need to work out your own value in the market place based on your skills and then negotiate accordingly; if the client wants your skill set and thinks you are right for the contract they may be prepared to move on the rate
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  3. #3

    Still gathering requirements...


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    Question

    Thanks

    I have already been told by the agency that the this how it will work

    I submit timesheet to agency
    they pay umbrella
    umbrella pay me

    so where would that leave me on uplift?

  4. #4

    Umbrella Queen

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    Quote Originally Posted by chappers View Post
    Thanks

    I have already been told by the agency that the this how it will work

    I submit timesheet to agency
    they pay umbrella
    umbrella pay me

    so where would that leave me on uplift?
    Sorry, I am not sure I know what you mean
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  5. #5

    Still gathering requirements...


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    Question

    Quote Originally Posted by LisaContractorUmbrella View Post
    Sorry, I am not sure I know what you mean
    that didn't make sense after reading back.

    But have asked the agency for more clarification anyway.

    so technically my weekly rate should be

    contract value + brolly rate + Employers NI

    then over 5 days = daily rate in a technical sense ?

    ie current cals are @130pd:

    Employer's NI 57.42
    Employee's NI 49.93
    Employee Tax 76.21
    Total All Tax 183.56
    CU Margin 27.50
    Total Net Income 436.45

    taking in the assumptions above @130pd + 27.50 margin + 57.42 Employers NI = 734.92pw

    Employer's NI 67.72
    Employee's NI 58.88
    Employee Tax 91.16
    Total All Tax 217.76
    CU Margin 27.50
    Total Net Income 487.32

    Therefore from the 130pd, the daily rate with uplift would be around 147pd.

    This correct or am I way off the mark??

    Also, would I with CU be able to claim travel expensies as it would be my first 'gig' and only for 3 months?

    mtia

  6. #6

    Umbrella Queen

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    You are correct to a degree - you need to remember that tax and NIC's are all taken as a percentage of earnings so it's not as simple as working out the brolly's margin and the employer's NIC's on a rate and then adding those figures to it.

    With regard to travel and subsistence expenses - if you intend to work on more than one assignment whilst you are in the employment of an umbrella company then you would be entitled to tax relief on the costs

    HTH
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  7. #7

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    Thanks Lisa.

    I gonna need your services.

    Got my first contract :thumbup:

  8. #8

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    Quote Originally Posted by chappers View Post
    Thanks Lisa.

    I gonna need your services.

    Got my first contract :thumbup:
    Well done
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  9. #9

    Nervous Newbie


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    Quote Originally Posted by chappers View Post
    Thanks

    I have already been told by the agency that the this how it will work

    I submit timesheet to agency
    they pay umbrella
    umbrella pay me

    so where would that leave me on uplift?
    That is the uplifted rate then if you are being paid by umbrella, (they would of put in extra so that the umbrella company can deduct employer NI). If you ask for PAYE (getting paid dircetly by the company) it will be alot less your pay.

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