In A Major Pickle... Help appreciated

**SimonMac** · 26 April 2011, 10:54

Originally posted by JayD View Post

Hi Guys, sorry if this is in the wrong place. Desperately need advice and hope you can help!

I've just started a new contract at the beggining of this month and have been attempting to sort out my Ltd company. I registered with companies house and found an accountant. Unfortunately i have been unable to start up a business bank account due to my credit rating (i'm only 18 years old, credit rating is virtually non exitant)

So, i've been left with pretty much no alternitive but to look for an umbrella.

The value of the contract is 180 a day. I previously went through off-shores no problem but i have seen the risks and would preferr to go down the safer route.

However, i've calculated using some umbrella companies and have seen that i could be paying £2000 a month tax! Which is absolutely ludicrous.

So yeah, i desperately need some advice as soon as possible. The funds are due to be transferred to me from the agency on Thursday and i'm pretty buggered if theres nowhere for the funds to go and the rent can't get paid!

Many Thanks,
JD

I was in a similar situation, in the end I resigned as a Director of the company, installed my father as director and me the only shareholder and let him open the business bank account.

**SimonMac** · 26 April 2011, 11:00

Originally posted by JayD View Post

Hi Guys, sorry if this is in the wrong place. Desperately need advice and hope you can help!

I've just started a new contract at the beggining of this month and have been attempting to sort out my Ltd company. I registered with companies house and found an accountant. Unfortunately i have been unable to start up a business bank account due to my credit rating (i'm only 18 years old, credit rating is virtually non exitant)

So, i've been left with pretty much no alternitive but to look for an umbrella.

The value of the contract is 180 a day. I previously went through off-shores no problem but i have seen the risks and would preferr to go down the safer route.

However, i've calculated using some umbrella companies and have seen that i could be paying £2000 a month tax! Which is absolutely ludicrous.

So yeah, i desperately need some advice as soon as possible. The funds are due to be transferred to me from the agency on Thursday and i'm pretty buggered if theres nowhere for the funds to go and the rent can't get paid!

Many Thanks,
JD

On second thoughts, that seems to be very wrong, most calculators are showing deductions of about £1200 per for weeks, how did you come by this figure of £2k?

**JayD** · 26 April 2011, 11:17

Thats an approximate figure that i recieved from Pulse Umbrella, who i know are one of the better ones.

It seems even with deductions of 1,300 thats a fair chunk out of the salary!

**2BIT** · 26 April 2011, 11:58

Originally posted by JayD View Post

Hi Guys, sorry if this is in the wrong place. Desperately need advice and hope you can help!

I've just started a new contract at the beggining of this month and have been attempting to sort out my Ltd company. I registered with companies house and found an accountant. Unfortunately i have been unable to start up a business bank account due to my credit rating (i'm only 18 years old, credit rating is virtually non exitant)

So, i've been left with pretty much no alternitive but to look for an umbrella.

The value of the contract is 180 a day. I previously went through off-shores no problem but i have seen the risks and would preferr to go down the safer route.

However, i've calculated using some umbrella companies and have seen that i could be paying £2000 a month tax! Which is absolutely ludicrous.

So yeah, i desperately need some advice as soon as possible. The funds are due to be transferred to me from the agency on Thursday and i'm pretty buggered if theres nowhere for the funds to go and the rent can't get paid!

Many Thanks,
JD

seems very high - depends on your tax band but even then would say its prob around 1200 like SimonMac said, you should phone an umbrella company and get them to give you a quote, then phone another - if the quotes are similar then that's probably the best indicator of what you'll take home - haven't done the sums but you could be in the higher tax bracket which means 40% tax over 35k earned

**BlasterBates** · 26 April 2011, 12:45

Try this:

Umbrella Company IR35 Calculator

Looks reasonable.

**JayD** · 26 April 2011, 13:00

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!

**stek** · 26 April 2011, 13:03

Originally posted by JayD View Post

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!

£2550 a mo!!

Year surely?

**NotAllThere** · 26 April 2011, 13:06

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

**JayD** · 26 April 2011, 13:12

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

In A Major Pickle... Help appreciated