Newbie Questions

[Coreyk]

My guess at your questions.
Are you contracting through an agency or direct with the client?
If you are contracted through an agency, check the payment terms in the contract.
If you are "opted in", then the agency should pay you without waiting for the client, normally invoice Monday - paid Friday.
If you are "opted out", then the agency is under no obligation to pay you before it receives payment from the client.
If your contract is direct with the client then it will depend on their invoice terms, +7, 30 or 60 days.

If the brolly is runnning a Pay Between Assignments scheme then they have to pay you 4 weeks of 50% of your assignment value over the last 12 weeks (normally) or NMW. Your assignment value does not include bonuses, so by paying NMW it cuts down their liabilities.

Those more knowledgable may be able to give you a better explantion?

Thanks for the explanation. I originally saw it like paying into a income protection insurance plan (hence allowable like their admin cut includes indemnity/public liability etc..). It's only like £15 a week but I guess if they have even a 1000 contractors on the books that's a nice sum in their bank account until payable..

Cheers for the reply.. The contract will be via an agency and so I will check the opt in/out bit when it comes through later this week. And yes it's £212 a week basic which is probably NMW*37.5

[malvolio]

Thanks for the explanation. I originally saw it like paying into a income protection insurance plan (hence allowable like their admin cut includes indemnity/public liability etc..). It's only like £15 a week but I guess if they have even a 1000 contractors on the books that's a nice sum in their bank account until payable..

Cheers for the reply.. The contract will be via an agency and so I will check the opt in/out bit when it comes through later this week. And yes it's £212 a week basic which is probably NMW*37.5

You don't have much of a choice about opting in or out, and you certainly need to do it before the contract turns up anyway. You need to talk to your umbrella about how they manage that aspect.

Then go back and read the guides (CUK and PCG) again in the light of your new knowledge. You have no idea how much you don't know.

[kingcook]

They split out basic pay and bonus, the basic pay appears to be what they are prepared to pay each wk/mth even if the end client does not pay on time, the bonus is then the bulk which you will only get when thy have received funds from the end client.
Thus I can get separate money or wait until the client has paid and get it all together..

The umbrella co. will only pay you once they have received money from the client/agent (at least in my short experience with an umbrella co.)

[Sausage Surprise]

Thanks MrRobin.

For those saying I don't know how an Umbrella works I have read the guides and the options were included in two illustrations I have received from the companies which I couldn't find in the guides.

Eg: in the tax and ni deductions section


Er's NIC
Basic Pay
Holiday Advance
Search Advance
Notice Advance
Bonus
Taxable Income

PAYE Ee's NIC
Net Pay

They split out basic pay and bonus, the basic pay appears to be what they are prepared to pay each wk/mth even if the end client does not pay on time, the bonus is then the bulk which you will only get when thy have received funds from the end client.
Thus I can get separate money or wait until the client has paid and get it all together..

Regarding the Umbrella Company I found this list League Tables

And they are in the top 10 but was just looking for real life experience although I guess most of you have moved on to ltd companies.

Apologies for the basic mileage/lunch question...

and some people say that running a limited is more complicated than an Umbrella

[kingcook]

and some people say that running a limited is more complicated than an Umbrella

I found that umbrella was more complicated, not the using them part, but trying to understand what they were doing with my money.

Ltd Co FTW!!

[LisaContractorUmbrella]

I guess I should say you should read the guides Lisa?




What does search week mean?
Search week is a week that occurs at the end of a contract. If you do not have a new contract to start immediately we will pay you a week at the national minimum wage while you search for a new role. For Benchmarking contracts. For Swedish Derogation contracts we will pay you 4 weeks at 50% of your assignment rate.

It would appear as they are deducted pre-tax they are allowances which accumulate (hence the umbrella banks and gets interest) and then after the client contract runs out the company who employ you (the umbrella) can still pay another week..

Oh ok so basically the umbrella is putting through rolled up deductions for pay between assignments - you may like to check out a couple of threads in the umbrella company section about the legality of deducting money from contractors in order to fulfill employer statutory responsibilities.