Anyone contract through Hays

[GlenW]

Well, opt-out makes no point at this moment, as Hays contributing 1% to my pension "for free".

However, I'm not sure about self-employment status. I just figured out that most (if not all) contractors in my company working through umbrella companies, while Hays never mentioned that option to me and I'm trying to find explanation why. If I add up all expenses (which are not paid now) it comes to quite a substantioal amount per year I could have saved.

Now, I'm kinda working for Hays (and never saw the contract with my current employer). I am wondering if I can switch to one of umbrella companies now? Any ideas?

Can anyone understand this gobbledegook?

[JRCT]

Well, opt-out makes no point at this moment, as Hays contributing 1% to my pension "for free".

However, I'm not sure about self-employment status. I just figured out that most (if not all) contractors in my company working through umbrella companies, while Hays never mentioned that option to me and I'm trying to find explanation why. If I add up all expenses (which are not paid now) it comes to quite a substantioal amount per year I could have saved.

Now, I'm kinda working for Hays (and never saw the contract with my current employer). I am wondering if I can switch to one of umbrella companies now? Any ideas?

It sounds to me like you're a temp, working for Hays, which means you would have an employment contract with Hays who have placed you at that client "for now".

Some of the contractors that also work at the same client as you, it sounds like, have a different arrangement and have been recruited by Hays and in order to fulfill the contract that they have with Hays, they are employed by an umbrella company.

I guess there might also be contractors at the same place who run their own Ltd company and have also been recruited by Hays to work on a particular aspect of a project for the end client. They too will have a contract with Hays and Hays will have a contract with the client.

It could be that each of the three were brought in at different times, or for a different purpose or different skillset or undert a different budget for either Hays or the end client and that might explain why some are working under slightly different contracts or conditions to you.


I've never worked for an umbrella and it's 15-20 years since I've been a temp but I'm pretty sure that in all circumstances the contract would always be with Hays, not the end client.

[aphrodita]

I've never worked for an umbrella and it's 15-20 years since I've been a temp but I'm pretty sure that in all circumstances the contract would always be with Hays, not the end client.

Thank you for your answer - in case I don't apply for a permanent contract within the company, I will be working for Hays. They sent me email back saying they never discussed umbrella company possibility with me as they thought it "will not be beneficial" for me.

As far as I understand I can switch now to work through Hays/Umbrella. Trying to sort out this question I've been reading a bit and my understanding of the difference between working through Hays and Hays/Umbrella, is that if I choose for the 2nd option, I become self-employed.

If you're working through Hays/Umbrella, your food/millage expenses are paid for and you get higher hourly rate. If you work for Hays only, they match your 1% pension contribution should you choose for it. No other benefits besides headache so far...

Hays has a list of umbrella companies they cooperate with. Anyone can advise which should I choose?

[JRCT]

If you're working through Hays/Umbrella, your food/millage expenses are paid for and you get higher hourly rate. If you work for Hays only, they match your 1% pension contribution should you choose for it. No other benefits besides headache so far...

In all honesty, I would advise you stay as you are and take the pension contribution.

[aphrodita]

In all honesty, I would advise you stay as you are and take the pension contribution.

I've made my calculations and if I'm going to work through an umbrella company - my hourly rate goes up by 13.5%. I am losing 2% pension (0.8% I'm paying + 0.20% paid by government + 1% Hays contributes), however I'm still earning 11.5% more + my expenses are paid.

The only downside - I have to put aside money for the holiday pay myself instead of Hays doing it to me.

Are there any other perks one should be aware before deciding to go self-employed?

[JRCT]

I've made my calculations and if I'm going to work through an umbrella company - my hourly rate goes up by 13.5%. I am losing 2% pension (0.8% I'm paying + 0.20% paid by government + 1% Hays contributes), however I'm still earning 11.5% more + my expenses are paid.

The only downside - I have to put aside money for the holiday pay myself instead of Hays doing it to me.

Are there any other perks one should be aware before deciding to go self-employed?

How have you calculated a 13% increase if Hays have said it wouldn't be of benefit to you?

[aphrodita]

How have you calculated a 13% increase if Hays have said it wouldn't be of benefit to you?

Hays informed me about the hourly rate I will have if I go self-employed. That hourly rate is 13.5% higher than my current one. My current pay rate also includes holiday pay that Hays puts aside for every hour I work, and repays me when I want to take a day off.

I have to consider that for the increased pay rate I have to manage my own pension, but this shouldn't be a problem. Hays uses NEST which is quite expensive comparing to other pension advisors anyway.

[Contreras]

I've made my calculations and if I'm going to work through an umbrella company - my hourly rate goes up by 13.5%. I am losing 2% pension (0.8% I'm paying + 0.20% paid by government + 1% Hays contributes), however I'm still earning 11.5% more + my expenses are paid.

The only downside - I have to put aside money for the holiday pay myself instead of Hays doing it to me.

Are there any other perks one should be aware before deciding to go self-employed?

You wouldn't be self-employed, you would be an employee of the umbrella company and receive a salary proportional to your fee earning.

The umbrella will also deduct Tax + NI from your salary, since you are an employee.

The umbrella will also apply a management charge (weekly or monthly).

Expenses can be paid via the umbrella. Typically the expense amounts are deducted from fees you are earning, which means proportionally less salary. The benefit is that expenses are tax free.

If this is your only work placement through the umbrella then the expenses become taxable, in other words to be paid just as salary.

Be careful that you not comparing post-tax rate as an employee vs. pre-tax hourly rate of a contractor.

[aphrodita]

Be careful that you not comparing post-tax rate as an employee vs. pre-tax hourly rate of a contractor.

This is a brilliant summary - thank you very much I do compare gross rates - not net rates vs gross rates, but it is indeed a good point.

As for expenses, I scanned a couple of those umbrella websites and it seems that expenses are not taxable (FPS website in the section "how it works"). My partner suggested it might be because I became self-employed....

I think you might be right about self-employment status, unless an umbrella company just does your taxes for you and takes a monthly fee for doing so...

[Contreras]

Hays informed me about the hourly rate I will have if I go self-employed. That hourly rate is 13.5% higher than my current one. My current pay rate also includes holiday pay that Hays puts aside for every hour I work, and repays me when I want to take a day off.

I have to consider that for the increased pay rate I have to manage my own pension, but this shouldn't be a problem. Hays uses NEST which is quite expensive comparing to other pension advisors anyway.

Hays are currently paying employers NI for you. With the umbrella it's deducted from your rate. This would account roughly for the 13.5% uplift.