Umbrella Company Stats

[pisces]

And a holiday fund? - that's interest that they were making from your money.

What is the name of this umbrella company?

Yeah I used brolleys when I started. What a bunch of cocks, nearly all of them wanted to do this 'holiday fund' thing. It's a complete con, it's your money you are quite capable of looking after it yourself.

[max]

You should know by now that I work on the basis that nobody is inside IR35.

Not always, just yesterday you said:

If you've read that much, you will know that you can't opt out of IR35 and if you take a job with your ex-employer on much the same overall conditions you are 99% certain to have been caught by IR35, which is primarily what it's all about.

http://forums.contractoruk.com/showp...68&postcount=3

You could go into politics...

[ITD2]

Moose! You’ll be glad to hear that you’re not the only one that’s had your pants pulled down by Umbrella companies But like you say for the short term it’s a viable option.. Just out of interest, how easy is it to set up a Ltd, I’ve heard lots of different views; some say it’s a hassle some say not? I’m more interested in what kind of paperwork/receipts you need to keep and for how long. Can you still have a 1 man Ltd company these days????

[malvolio]

Not always, just yesterday you said:




http://forums.contractoruk.com/showp...68&postcount=3

You could go into politics...

Well that's an interesting point you raise, and in reply I would just like to say that the question you really ought to be asking is....

If you're daft enough to do the Friday-to-Monday, then you have met the IR35 criterion, about the only one that nobody really argues with. Most people don't do it that way.

And to be fair the circumstances in that post were slightly atypical.

[ASB]

But it's still your money... [smile]

Nah, it's gordons now.

[r0bly0ns]

Just out of interest, how easy is it to set up a Ltd,

Our accountant did it for us free on the agreement we stuck with him for a minimum of 12 months.

We told him what we wanted the company to be called. He sorted it out and provided us with the inorporation certificate when it came through (about 3 - 5 days IIRC).

[dertyb]

Amount Invoiced - £67290.00

Description: Amount (Percent)
Umbrella Fee: 2691.60 (4.0)
NI Employer: 6129.75 (9.1)
NI Employee: 2026.74 (3.0)
Tax: 14608.99 (21.7)

Total Deductions: 25457.08 (37.8)

Expenses: 7782.00 (11.6)
Net: 34050.92 (50.6)

Total Takehome: 41832.92 (62.2)

Something stinks with those numbers (regardless of the exorbitant fees!)

The Employee's NI figure should be based on the £67k invoiced, less £8k expenses, less £2.7k fees, less the Employer's NI which is allowable. This would result in an E'ee NI liability of roughly £3.5k - Not the £2k per your illustration.

Similarly, the PAYE calculated on this basis should be less than £12k, not the £14.5k you've shown.

[Moose423956]

Something stinks with those numbers (regardless of the exorbitant fees!)

The Employee's NI figure should be based on the £67k invoiced, less £8k expenses, less £2.7k fees, less the Employer's NI which is allowable. This would result in an E'ee NI liability of roughly £3.5k - Not the £2k per your illustration.

Similarly, the PAYE calculated on this basis should be less than £12k, not the £14.5k you've shown.

It's a valid point. Also, I've often wondered if there was any way of proving that the amount of NI charged had actually been sent off to the relevant authorities. Not that I don't trust them, but there doesn't seem to be any way of cross-checking what was charged.

[barry_abs]

hi moose - did you set up your own Ltd. in the end? if so, how does it compare in hindsight?

cheers

[Moose423956]

hi moose - did you set up your own Ltd. in the end? if so, how does it compare in hindsight?

cheers

No, I've gone permie now, but I'm still allowed to contribute here because I'm still a contractor at heart.

However, I did run a Ltd for about 6 years from 1995 to 2001. I think that's the way to go if you plan on contracting for a longer period. You need to do lots of admin type things throughout the year, but the take-home is definitely more with a Ltd, especially if you're not caught by the dreaded IR35. Also, when I did it, there was no flat rate VAT arrangement, which I hear makes things a lot simpler from a VAT point of view at least.

I'm sure there are lots of people on here who will say you'll be crazy to go via an umbrella, but it's your choice. The umbrella I was with provided the service I needed for 12 months. Yes, I could have saved money with a Ltd co, but I'd have to go through the hassle of setting up and closing down within a short space of time, and I really couldn't be bothered.

Anyway, good luck with whatever choice you make.