best umbrella

[malvolio]

And working every bank holiday and having no holidays at all and never being on the bench.??

I would suggest 7.5 * 22 * 220 is probably better guidance.

365 days - 20 days a/l - 104 weekends - 8 bank holidays = 233, so 220 is probably fair. But nobody books half-hours, surely...

[ASB]

365 days - 20 days a/l - 104 weekends - 8 bank holidays = 233, so 220 is probably fair. But nobody books half-hours, surely...

I am supposed to budget on my staff actually doing 1400 hours a year. Of course with all the reviews assessments time recording etc I think the actual number of production hours is probably about 3.

[malvolio]

I am supposed to budget on my staff actually doing 1400 hours a year. Of course with all the reviews assessments time recording etc I think the actual number of production hours is probably about 3.

I am not so concerned about the hours/revenue figures as I am about actual working hours. You plan service desks on the basis of n users making m calls a week and taking x minutes to handle (typically m=1 and x=10 minutes), then dividing by man hours to get how many warm bodies you need. I always put the staff at 6 hours a day. Doesn't matter how long they're in the office, that's as much productive time that you'll get out of anyone - and the formula has held up for many years!

[clwd]

Or under IR35, if you are, you can get 95% of all your income, or 95% of all your income less the umbrella's fees, which will be a lot more than most accountants.

Don't get it! Why can you still get 95% of all your income if the contract is under IR35? I thought you can only get PAYE and it is not worth opening a ltd company if the contract falls in IR35. Please can anyone clarify this issue as there is a bit confusion?

[Hex]

I think this is a reference to the fact that you have to pay 95% of your income from an IR35 contract as PAYE. The other 5% you can keep in the company and distribute after CT if you wish. It's supposed to be to cover running expenses.

The amount you gain from the 5%, together with the saving on umbrella fees should be more than an accountant would cost you (obviously this depends on what the 5% actually works out at) in most cases.

[TheFaQQer]

I think this is a reference to the fact that you have to pay 95% of your income from an IR35 contract as PAYE. The other 5% you can keep in the company and distribute after CT if you wish. It's supposed to be to cover running expenses.

The amount you gain from the 5%, together with the saving on umbrella fees should be more than an accountant would cost you (obviously this depends on what the 5% actually works out at) in most cases.

Plus anything you can make by being on FRS for VAT.

[Denny]

Don't get it! Why can you still get 95% of all your income if the contract is under IR35? I thought you can only get PAYE and it is not worth opening a ltd company if the contract falls in IR35. Please can anyone clarify this issue as there is a bit confusion?

It's gross into your business account.

Then minus 5% allowable as business running costs and all legitimate expenses on top. Then the figure you're left with: you deduct PAYE tax and employers and employees NI on the rest, taking into account the tax free allowance for each year, and tax percentage bandings that apply to all employees. You also make a bit on top of the VAT you charge the client if you are on the flat rate scheme by deducting the percentage owed to the VAT man (1% less in the first year) and keeping the rest. Do bear in mind though that this VAT margin will attract interest if left in your account, and all will be taxable as well.