Originally posted by northernladuk
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Reply to: CXC Global Umbrella + Tax Back?
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Previously on "CXC Global Umbrella + Tax Back?"
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Originally posted by SueEllen View PostNow time to try and change umbrella companies. May be the one who bothered to explain it on here is the way to go.
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Now time to try and change umbrella companies. May be the one who bothered to explain it on here is the way to go.
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Originally posted by lje View PostIt seems to me that you're still not quite getting it. In effect your umbrella is not paying for the accomodation at all. If you were staying with a friend for free then all of your money would be used towards salary and you would get a larger amount as salary (although less overall as you would pay more tax). The less you pay for rent the more income you will have. The rent money comes out of the money which you bring in.
If they forgot to apply the £700 one week and then applied £1400 the next week then you are no worse off overall than if they'd applied the £700 to both weeks.
Not sure I can explain this to you without sitting next to you with a pen and paper and drawing diagrams!Last edited by ronanm; 4 February 2010, 17:02.
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It seems to me that you're still not quite getting it. In effect your umbrella is not paying for the accomodation at all. If you were staying with a friend for free then all of your money would be used towards salary and you would get a larger amount as salary (although less overall as you would pay more tax). The less you pay for rent the more income you will have. The rent money comes out of the money which you bring in.
If they forgot to apply the £700 one week and then applied £1400 the next week then you are no worse off overall than if they'd applied the £700 to both weeks.
Not sure I can explain this to you without sitting next to you with a pen and paper and drawing diagrams!
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Originally posted by ronanm View PostBrilliantly descibed - thanks a lot
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Originally posted by LisaContractorUmbrella View PostYour actual income is £1750.00 per week. You pay £320 each week to your landlord for rent and, assuming you are continuing to pay for your permanent residence, this amount is allowable as an expense. This means that your umbrella company will process your expense claim for week 1 with your earnings for week1 - therefore your taxable pay for the week will be £1430.00. Once deductions have been made for tax and NI and your umbrella company's (high!) fees you will be left with £1222.69 in your pocket. From this £1222.69 you will pay your rent for week 2 but this will, in turn, be processed as an expense against your week 2 earnings.
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Originally posted by northernladuk View PostTaking your £700 a week pad out of that would have left a pretty sick looking number
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Originally posted by ronanm View PostI didn't know any contractors when I moved to the UK so just wanted something sorted asap - needless to say, I have not bothered my arse to find out much more since
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Originally posted by ronanm View PostSo Net is £1222.69. I physically pay £320 each week to my landlord and they set aside £320 for next week's rent - it that right?
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Originally posted by LisaContractorUmbrella View PostYour net is £1222.69 but from that you would have to pay your rent of £320 for the following week
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Originally posted by MarkOD View Postalso £87.50 for a weekly fee seems ridiculous, my umbrella company i use is a lot cheaper and i imagine Lisa above is a lot cheaper also
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also £87.50 for a weekly fee seems ridiculous, my umbrella company i use is a lot cheaper and i imagine Lisa above is a lot cheaper also
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Originally posted by LisaContractorUmbrella View PostYour net is £1222.69 but from that you would have to pay your rent of £320 for the following week
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