• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Rather stunned, need help

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Rather stunned, need help

    Hi all, been researching umbrellas as potential employers are asking for this. The lowest quote I can find is £404 a week on a day rate of £112. That's £70 a week less than standard employers PAYE. £70 a WEEK! I'm horrified. How has this been worked out and surely umbrellas don't charge £70 a week for their services... do they?? Any advice gratefully received

    #2
    It’s because you have to pay for Employer’s NI as well as Employee’s NI.

    This explain Employer’s NI

    https://forums.contractoruk.com/umbr...loyers-ni.html

    Take look at this breakdown:

    https://forums.contractoruk.com/publ...ml#post2394879

    And why calculations differ
    https://forums.contractoruk.com/umbr...ey-differ.html

    Just take a look at the stickies on this forum, but basically £112 a day does not make contracting worthwhile - and certainly not worth it if you are inside IR35.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by sally40t View Post
      Hi all, been researching umbrellas as potential employers are asking for this. The lowest quote I can find is £404 a week on a day rate of £112. That's £70 a week less than standard employers PAYE. £70 a WEEK! I'm horrified. How has this been worked out and surely umbrellas don't charge £70 a week for their services... do they?? Any advice gratefully received
      Hi Sally40t, if you are working as a contractor, you need to realise that your rate is referred to as your "contract rate" and not your taxable salary. If you are working via an umbrella your rate should reflect an uplift over PAYE to cover the additional costs associated. Happy to talk you through it if that would help

      Comment

      Working...
      X