also £87.50 for a weekly fee seems ridiculous, my umbrella company i use is a lot cheaper and i imagine Lisa above is a lot cheaper also
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Originally posted by MarkOD View Postalso £87.50 for a weekly fee seems ridiculous, my umbrella company i use is a lot cheaper and i imagine Lisa above is a lot cheaper alsoComment
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Originally posted by LisaContractorUmbrella View PostYour net is £1222.69 but from that you would have to pay your rent of £320 for the following week'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by ronanm View PostSo Net is £1222.69. I physically pay £320 each week to my landlord and they set aside £320 for next week's rent - it that right?Comment
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Originally posted by ronanm View PostI didn't know any contractors when I moved to the UK so just wanted something sorted asap - needless to say, I have not bothered my arse to find out much more since'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostTaking your £700 a week pad out of that would have left a pretty sick looking numberComment
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Originally posted by LisaContractorUmbrella View PostYour actual income is £1750.00 per week. You pay £320 each week to your landlord for rent and, assuming you are continuing to pay for your permanent residence, this amount is allowable as an expense. This means that your umbrella company will process your expense claim for week 1 with your earnings for week1 - therefore your taxable pay for the week will be £1430.00. Once deductions have been made for tax and NI and your umbrella company's (high!) fees you will be left with £1222.69 in your pocket. From this £1222.69 you will pay your rent for week 2 but this will, in turn, be processed as an expense against your week 2 earnings.Comment
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It seems to me that you're still not quite getting it. In effect your umbrella is not paying for the accomodation at all. If you were staying with a friend for free then all of your money would be used towards salary and you would get a larger amount as salary (although less overall as you would pay more tax). The less you pay for rent the more income you will have. The rent money comes out of the money which you bring in.
If they forgot to apply the £700 one week and then applied £1400 the next week then you are no worse off overall than if they'd applied the £700 to both weeks.
Not sure I can explain this to you without sitting next to you with a pen and paper and drawing diagrams!Loopy LooComment
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Originally posted by lje View PostIt seems to me that you're still not quite getting it. In effect your umbrella is not paying for the accomodation at all. If you were staying with a friend for free then all of your money would be used towards salary and you would get a larger amount as salary (although less overall as you would pay more tax). The less you pay for rent the more income you will have. The rent money comes out of the money which you bring in.
If they forgot to apply the £700 one week and then applied £1400 the next week then you are no worse off overall than if they'd applied the £700 to both weeks.
Not sure I can explain this to you without sitting next to you with a pen and paper and drawing diagrams!Last edited by ronanm; 4 February 2010, 17:02.Comment
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