In A Major Pickle... Help appreciated

[gingerjedi]

The quote is for the deductions, not the brolly fees, I think.

So 2 grand is too much but £2,550 isn't? £100 difference brolly v Ltd isn't right at any level??

[gingerjedi]

Sorry, should've been more specific.

2,505 Net pay a month after fees and deductions.

That is on a daily rate of 175 with 200 a month expenses.

I can't really see this being beaten anywhere else? Parasol took so much when i was going via. them.

Too much stress for an 18 year old! lol

So it was never anywhere near £2k a month in tax, more like £900 tax and NI.

The difference should be about £400-£500 brolly v Ltd on that rate.

[JayD]

So it was never anywhere near £2k a month in tax, more like £900 tax and NI.

The difference should be about £400-£500 brolly v Ltd on that rate.

Right Heres the quotes shown as take home after fees and deductions :

Ltd accountant (Churchill Knight) : 2700
Excellium Umbrella : 2500
Pulse Umbrella : 1900 (This, i class, to be near 2000 in tax)

[gingerjedi]

Right Heres the quotes shown as take home after fees and deductions :

Ltd accountant (Churchill Knight) : 2700
Excellium Umbrella : 2500
Pulse Umbrella : 1900 (This, i class, to be near 2000 in tax)

Contract Income:
£3,850.00
Expenses:
£831.60
Net Pay:
£1,990.00

From the Pulse site, that's with expenses of 831.60 which you add to the net I'd hope!!

They've not worded their calculator very well.

[JayD]

Contract Income:
£3,850.00
Expenses:
£831.60
Net Pay:
£1,990.00

From the Pulse site, that's with expenses of 831.60 which you add to the net I'd hope!!

They've not worded their calculator very well.

Ah right, gotcha.

Looks as though churchill knight may have got the calculations wrong. Going to pop down to a local accountant down the road from me and see if they can help this afternoon.

[gingerjedi]

Ah right, gotcha.

Looks as though churchill knight may have got the calculations wrong. Going to pop down to a local accountant down the road from me and see if they can help this afternoon.

There's a lot of variables, IR35 being the biggest.

£2,700 would be IR35 caught.

[escapeUK]

Cheers for the help guys. Just got a nice illustration from Excellium umbrella quoting me at 2,550 a month .. about 100 or so less than what the accounted for my LTD company quoted me so it looks like i might go down this route. Has anybody used them before? Not going back to parasol!

There is no way that the difference between umbrella (paying two lots of national insurance) is going to be with £100 or so of a limited company.

[Jason]

Sorry, should've been more specific.

2,505 Net pay a month after fees and deductions.

That is on a daily rate of 175 with 200 a month expenses.

I can't really see this being beaten anywhere else? Parasol took so much when i was going via. them.

Too much stress for an 18 year old! lol

I have to say I am impressed. You went contracting at 18 years old with basically 0 years experience in your area, and are getting 175 a day. Mate. You are awsome!

Save up some of that money and use it as seed capital to start a full on business and you will go a long way.

[LisaContractorUmbrella]

JayD you need to remember that your take home pay through an umbrella company will not vary by anything other than the umbrella companies' fees; you are paid PAYE and therefore the amounts deducted for tax and national insurance are fixed whichever company you decide to use. If umbrella companies are promising you higher rates of take home pay you should ask how they are achieving those figures and then ask them to give you a written breakdown.