Umbrella company - not a normal question!

[n5gooner]

Hi All,

We use an umbrella company to 'employ' three contractors, we want to take a new chap on, at a rate of £6ph, our existing umbrella company says they can't employ him because after they have taken their fee he'll be on less than minimum wage.

Does anyone know of a company who can help? Our existing company's name is D*nb*o

Many thanks

Gooner.

[Clare@InTouch]

Can you not have your own payroll set up, and pay him direct?

[n5gooner]

we don't want employees, also our accountant want to charge us extra for this.

[Alan @ BroomeAffinity]

Is it not a bit mean of you to refuse to pay a fee to process the payroll but you expect someone on £6 ph to pay umbrella fees?

[Vallah]

Sounds to me like you've got 7p an hour to play with. Assuming a forty hour week, you need to find a company who'll process everything for £2.80. Good luck.

[ASB]

Sounds to me like you've got 7p an hour to play with. Assuming a forty hour week, you need to find a company who'll process everything for £2.80. Good luck.

Better hope it's not 37.5 hours then. Already under NMW after Er's NI comes out...

[kingcook]

we want to take a new chap on, at a rate of £6ph

Have you thought about smuggling someone in from China. You could probably make £5K in smuggling fees, and only pay them £1.50/hr?

[LisaContractorUmbrella]

Sorry n5gooner but you'll find that all of the major umbrella companies will give you the same answer. From the £6 per hour that's agreed in the contract the umbrella company has to pay employer's national insurance and also has to make a profit so the salary that they would be able to pay their employee would be under minimum wage and therefore, if they chose to do it they would be breaking the law.

[n5gooner]

Is it not a bit mean of you to refuse to pay a fee to process the payroll but you expect someone on £6 ph to pay umbrella fees?

we pay the fee's

[n5gooner]

Sorry n5gooner but you'll find that all of the major umbrella companies will give you the same answer. From the £6 per hour that's agreed in the contract the umbrella company has to pay employer's national insurance and also has to make a profit so the salary that they would be able to pay their employee would be under minimum wage and therefore, if they chose to do it they would be breaking the law.

hi Lisa, that's what I'm hearing, thanks for the reply....looks like we'll have to up the hourly rate.