Umberella Companies

[ITD2]

To start off with sorry if this has been repeated else where on this site, but I could not find what I was looking for really.

I am currently with Genie World UK as they are called at this moment (previously Orange Genie) and I have a few questions to ask as regards to Umbrellas and especially this one, so here goes.

1. Roughly what is the percentage of my monthly wage which I should be getting taxed at (max earning 2K monthly) I am currently getting stoppages which equate to near the 40% mark, this includes their N.I. and fee’s. I find this a tad steep, anyone care to tell me the percentage of stoppages they are getting taken away from them.

2. Should all umbrella companies give you a copy of their terms and conditions? I have asked for this and received a contract of employment, is this the same?

3. I know there is a sticky at the top of the page as to which umbrellas are recommended, Parasol seems like an honest reputable company, and can anyone recommend them as opposed to Orange. Not had problems with orange paying me or anything like that, it’s just the 40% stoppages that are killing me. Is this normal?

Thanks in advance

[LisaContractorUmbrella]

Hi ITD2

Your earnings will be the same whichever umbrella company you use - the only differences will be their fees and the level of service that you receive. All umbrella's pay through PAYE and you should only ever claim those expenses that are permitted by the Inland Revenue so your earnings will not significantly increase if you move from one to another unless you are paying particularly high fees.

HTH

[M@H]

I was with Parasol...


...for a week


I got sick of the hold music and the general lack of coherance from the compnay when I got through on the phone so called it a day.

[ASB]

It’s just the 40% stoppages that are killing me. Is this normal?Thanks in advance

I'm, afraid you probably need to move to somewhere with lower tax and social security rates to do much about that.

You can find tax and NI rates on the HMRC web site. Don't forget that employers NI will have to paid as well.

[ITD2]

Ok so 40% is about the going rate...OWTCH!!!!!

Monthly Orange Genie are taking around £60 as their fee`s, which I dont think is to bad unless someone can tell me otherwise. Their N.I. contributions are higer than mine is this normal?

As for the expenses I only claim whats on the HMRC web site as they most probably set the standard, I just claim the basics to be honest Daily meal subsidence and Incidental expenses if I`m working away and stay in a hotel over night.

So i`m not going to get anything better unless I move to a tax haven?

[Bigbird]

If you are only earning £2k/month why are you bothering with contracting in the first place? You would be much better off with a permie role where you have no fees and no employers NIC deducted from your wage.

Even doing standard agency work where you are a direct employee of the agency (well on a contract for services if you want to be pedantic, but an employee for tax purposes) would be better for you because again there are no fees and the agency is responsible for paying employers NI.

You need to get your CV out there.............

[Cooperinliverp00l]

If you are only earning £2k/month why are you bothering with contracting in the first place? You would be much better off with a permie role where you have no fees and no employers NIC deducted from your wage.

Even doing standard agency work where you are a direct employee of the agency (well on a contract for services if you want to be pedantic, but an employee for tax purposes) would be better for you because again there are no fees and the agency is responsible for paying employers NI.

You need to get your CV out there.............

unless that is only working 1 day in that month !!!! This means annually 24k a year take off Employers NI, Employee Ni, PAYE you get paid more putting the salt on the fries at McDonalds or aligning the tins of beans at Asda.

[ITD2]

I contract for an agency who supply me with work, and i`m on an hourly rate... but not on the books with the agency. ...This is the 1st time ive done this type of work (contracting is what I belive I am doing ) all my other positions were perminent..... Sounded good to start with but after a couple of months getting hit with 40% stoppages/deductions, I`ve come to the conclusion you a right cooperinliverpool I`d be better of with a paper round or stacking shelves.
Like I say im new to all this type of work and am trying to find out more...you got to start some where any advice very welcome

[Bigbird]

You should be on the agency's books. They are taking the piss.

How did you come to be working for an umbrella? Don't tell me - the agency recommended them? Bunch of bleeding cowboys, you truly would be better off elsewhere.

[ITD2]

Yep your right there Agency hired me and said that I would be paid by the umbrella? They recommended Orange Genie; do they get some sort of credit advance from orange? Its all very confusing......I suppose the agency does this so that it does not have to pay NI contributions and thus saving them selves a lot of money. What is strange is that some are on the books and some are not