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Previously on "Umbrella company - not a normal question!"
Originally posted by LisaContractorUmbrellaView Post
Sorry n5gooner but you'll find that all of the major umbrella companies will give you the same answer. From the £6 per hour that's agreed in the contract the umbrella company has to pay employer's national insurance and also has to make a profit so the salary that they would be able to pay their employee would be under minimum wage and therefore, if they chose to do it they would be breaking the law.
hi Lisa, that's what I'm hearing, thanks for the reply....looks like we'll have to up the hourly rate.
Sorry n5gooner but you'll find that all of the major umbrella companies will give you the same answer. From the £6 per hour that's agreed in the contract the umbrella company has to pay employer's national insurance and also has to make a profit so the salary that they would be able to pay their employee would be under minimum wage and therefore, if they chose to do it they would be breaking the law.
Sounds to me like you've got 7p an hour to play with. Assuming a forty hour week, you need to find a company who'll process everything for £2.80. Good luck.
Better hope it's not 37.5 hours then. Already under NMW after Er's NI comes out...
Sounds to me like you've got 7p an hour to play with. Assuming a forty hour week, you need to find a company who'll process everything for £2.80. Good luck.
We use an umbrella company to 'employ' three contractors, we want to take a new chap on, at a rate of £6ph, our existing umbrella company says they can't employ him because after they have taken their fee he'll be on less than minimum wage.
Does anyone know of a company who can help? Our existing company's name is D*nb*o
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