How much should I expect?

[dav77]

Hi folks,

My first post here on the forum, and new to contracting, its my first one. I'm using an Umbrella company (Giant). My wages are paid in arrears, and have not yet been paid yet, just started the contract 3 weeks ago. I'm just wondering how much I should expect?

The daily rate is £300, and I also include a £30 travel card on my expenses. I've stuck to my usual homemade ham sandwiches for lunch, but should I be buying lunches and adding them on to expenses??

I have a feeling I'm going to be disappointed when the first weekly payment is given :S

Any ideas roughly what I should receive?

Thanks for any insights
Dav

[Gonzo]

Hi folks,

My first post here on the forum, and new to contracting, its my first one. I'm using an Umbrella company (Giant). My wages are paid in arrears, and have not yet been paid yet, just started the contract 3 weeks ago. I'm just wondering how much I should expect?

The daily rate is £300, and I also include a £30 travel card on my expenses. I've stuck to my usual homemade ham sandwiches for lunch, but should I be buying lunches and adding them on to expenses??

I have a feeling I'm going to be disappointed when the first weekly payment is given :S

Any ideas roughly what I should receive?

Thanks for any insights
Dav

I have no idea, but you could use this calculator for an estimate : http://www.contractorumbrella.com/calculator.html

I am in no way endorsing this particular umbrella, in fact I wouldn't touch any umbrella with a bargepole myself, I have just picked this one because it is an advertiser on this site so the URL should not get scrambled by the swear word filter.

But be aware, no two people's circumstances are the same and if you have started through them recently then the amount of PAYE you have earned in the tax year so far could have a huge effect on your returns now.

But you knew that from the research that you have already done right?

[Grinder]

I'm a little surprised to hear you have signed a contract and yet do not know what your regular take-home will be. Is that not a good question to ask? Do you know what the umbrella company charges? If not, I guess did not hammer out a great deal; you realise you have conducted a negotiatio?

[Gonzo]

I'm a little surprised to hear you have signed a contract and yet do not know what your regular take-home will be. Is that not a good question to ask? Do you know what the umbrella company charges? If not, I guess did not hammer out a great deal; you realise you have conducted a negotiatio?

That's more like it.

However, in this case the OP knows the Gross figure that they are billing is, they just don't know what that the take home is likely to translate to. Neither do we because we don't know what they have already earned and had deducted PAYE in this tax year, or what their umbrella company charges, or the extent to which they are going to try and take the piss claiming dodgy expenses.

[LisaContractorUmbrella]

Gonzo is quite right when he says that no-one will be able to give you a 100% accurate estimate of your earnings without knowing your tax code and income for the year to date but an online calculator will give you a good idea. However, your account manager at Giant should be able to help you as they will hold the information needed to make an accurate calculation. They should also be able to advise you about the expenses that the HMR&C allow. With regard to your ham sandwiches - you are quite right not to claim anything; you haven't incurred any cost so you cannot claim an expense.

[BrowneIssue]

My first post here on the forum, and new to contracting, its my first one. I'm using an Umbrella company (Giant).

A good idea for one's first contract when unsure how best to proceed. Low risk and easy. Not necessarily the most efficient financially, but it is your first contract. Just about everyone gets shafted big time by their agent on their first contract so a few % going to an umbrella company is neither here nor there.

My wages are paid in arrears, and have not yet been paid yet, just started the contract 3 weeks ago. I'm just wondering how much I should expect?

The daily rate is £300

On a first contract? Well done. Regardless of what you are doing, well done!

, and I also include a £30 travel card on my expenses. I've stuck to my usual homemade ham sandwiches for lunch, but should I be buying lunches and adding them on to expenses??

Ask your umbrella company. From what I have heard of Giant you may have to speak to more than one person to get a straight answer. Some people swear by Giant, others swear at them. Much like any other business, I suppose.

I have a feeling I'm going to be disappointed when the first weekly payment is given

If you are, don't come here moaning about it - plenty are on the bench! Instead, get a business accountant and go the Ltd. Co. route

Any ideas roughly what I should receive?

Ask Giant. They are taking a few % of the rate so make them do some work for you.

Thanks for any insights
Dav

Congratulations on your first gig!

[pmeswani]

Hi folks,

My first post here on the forum, and new to contracting, its my first one. I'm using an Umbrella company (Giant). My wages are paid in arrears, and have not yet been paid yet, just started the contract 3 weeks ago. I'm just wondering how much I should expect?

The daily rate is £300, and I also include a £30 travel card on my expenses. I've stuck to my usual homemade ham sandwiches for lunch, but should I be buying lunches and adding them on to expenses??

I have a feeling I'm going to be disappointed when the first weekly payment is given :S

Any ideas roughly what I should receive?

Thanks for any insights
Dav

Most of the questions have been answered. In terms of expenses... what have you agreed with Giant? (No need to answer that in this forum.... but something you may want to consider asking them how much you can claim).

There are a number of things you have to consider when working out how much you will earn on a weekly basis. Such as...

1. Are you single or married? (The tax code is mainly worked out by this).

2. Do you have any Student Loans outstanding?

3. If you are separated from your partner and have kids, are you required to pay any Child Maintenance?

4. Are you making any pension contributions from your PAYE salary?

5. What are your charges to the Umbrella company?

6. Are you claiming any other expenses other than travel?

There are so many other questions that probably needs to be asked, but the above are a starter for 6. Use the calculator that has already been posted on this thread, and hopefully you will be in the money.

The one thing that does surprise me is that you are using an Umbrella whilst on £300 p/d. If your contract is for one or two months, then fair enough... but it would have been more efficient to set up your own ltd company with that type of rate.

[Grinder]

The one thing that does surprise me is that you are using an Umbrella whilst on £300 p/d. If your contract is for one or two months, then fair enough... but it would have been more efficient to set up your own ltd company with that type of rate.

Its a bit of a hijack to debate that here, but its probably helpful nonetheless. I would guess dav77 doesn't know any accountants or what to do to set up a company. The umbrellas appear to take away all this for small outlay each month.

To be honest, when I did the sums it probably was cheaper to go umbrella but I decided I could do more with my ltd company, I've done it before and I used to be an accountant.

[Torran]

for 3 weeks I would expect roughly £2800 (ish) on that rate, using those expenses + sub and using my own tax code.

[zara_backdog]

Hi

I uesd Giant before my Ltd. They will give you a spreadsheet if you ask detailing how much you can ean on £300pd this is what I did for me prior to starting the contract. Speak to your account manager\contact.