80%+ Take Home Pay from an umbrella

[Menelaus]

I think it was Seasick Steve who said he "started with nothing and still has most of it left"

[Maloty]

??

I have had a couple of phonecalls offering me the same deal. The guy tried to explain to me that no expenses are involved. You basically take a smaller salary and the rest is paid in a 0% loan back to you? My argument was what happens if the umbrella asks for the loan back? surley this can not be right, but he insisted this was workable and currently legal.

Anybody else had this type of call? and is anyone actually using this service and have any feedback please.

Let me guess AML lol... With the Rev spending more than ever on policing tax evasion I wouldn't recommend doing EBT or Offshore or even miss trading.. Somebody's going get their fingers burnt!

[Brussels Slumdog]

Employee Benefit Trust

I have had a couple of phonecalls offering me the same deal. The guy tried to explain to me that no expenses are involved. You basically take a smaller salary and the rest is paid in a 0% loan back to you? My argument was what happens if the umbrella asks for the loan back? surley this can not be right, but he insisted this was workable and currently legal.

Anybody else had this type of call? and is anyone actually using this service and have any feedback please.

Hector was not born yesterday.
Search the archieve for EBT or employee trusts

[ukcontractor2007]

The only other way of offering a high take home pay is for companies to use an employee loan scheme or trust scheme both of which have been discussed at great length on this very site

I have had a couple of phonecalls offering me the same deal. The guy tried to explain to me that no expenses are involved. You basically take a smaller salary and the rest is paid in a 0% loan back to you? My argument was what happens if the umbrella asks for the loan back? surley this can not be right, but he insisted this was workable and currently legal.

Anybody else had this type of call? and is anyone actually using this service and have any feedback please.

[BrilloPad]

There seems recently to have been a huge increase in the number of umbrella companies using high percentage take home pay quotes in their advertising and marketing. So can you legally take home 80% or even 85% of your earnings through an umbrella company?

The answer is yes but, and it is quite a big but, only if you plough almost all of your earnings into a pension scheme or if your expenses equate to 50%, or more, of your earnings. To give you an idea, to net 85% of your earnings if your gross income is £1500 per week, your expenses would have to be £865.00 per week.

So, if an umbrella company quotes you a take home pay figure of over 70% ask them to recalculate using the expense figure that you provide rather than one that they assume and you will find that the % take home drastically reduces.

The only other way of offering a high take home pay is for companies to use an employee loan scheme or trust scheme both of which have been discussed at great length on this very site

Are you suggesting some umbrella companies are twisting the facts? I am shocked!

[tim123]

Surely it's quite easy to get 85% with current rates being so low.

I got 90% through my Ltd... but that just goes to show how little I've been earning recently.

I'm currently pocketing 100% of my earnings

tim

[gingerjedi]

I earned £350 a day for a couple of weeks.
My umbrella paid be £1200 the 80% they love to quote
My actaul out of pocket expenses were about £625


I paid back my £625 to mastercard and spent the £525 in the shops,
so my real weekly earning were about £525 which is about 35%.

You should try getting a gig where you earn sod all like me, then you get to keep most of it.

HTH

[Brussels Slumdog]

My last 2 week gig was actually 35%

Surely it's quite easy to get 85% with current rates being so low.

I got 90% through my Ltd... but that just goes to show how little I've been earning recently.

I earned £350 a day for a couple of weeks.
My umbrella paid be £1200 the 80% they love to quote
My actaul out of pocket expenses were about £625


I paid back my £625 to mastercard and spent the £525 in the shops,
so my real weekly earning were about £525 which is about 35%.

[gingerjedi]

Surely it's quite easy to get 85% with current rates being so low.

I got 90% through my Ltd... but that just goes to show how little I've been earning recently.

[LisaContractorUmbrella]

There seems recently to have been a huge increase in the number of umbrella companies using high percentage take home pay quotes in their advertising and marketing. So can you legally take home 80% or even 85% of your earnings through an umbrella company?

The answer is yes but, and it is quite a big but, only if you plough almost all of your earnings into a pension scheme or if your expenses equate to 50%, or more, of your earnings. To give you an idea, to net 85% of your earnings if your gross income is £1500 per week, your expenses would have to be £865.00 per week.

So, if an umbrella company quotes you a take home pay figure of over 70% ask them to recalculate using the expense figure that you provide rather than one that they assume and you will find that the % take home drastically reduces.

The only other way of offering a high take home pay is for companies to use an employee loan scheme or trust scheme both of which have been discussed at great length on this very site