Umbrella question...

[LisaContractorUmbrella]

The umbrella company is your employer and they will invoice the end client/agency for the contract rate x the hours or days worked - this is the umbrella company's income as agreed in the business to business contract with the end client/agency. From this an amount is retained to pay to HMR&C for Employer's National Insurance contributions as well as an amount which is retained by the umbrella company as their margin. The balance is your salary and from this is deducted income tax and employee's national insurance. Although an amount will be deducted for holiday pay to cover the umbrella company's obligation under the EC Working Time Directives this will be paid back to you whenever you take holiday or when you leave their employment. Your salary is all subject to PAYE tax and NI

[pushingpixels]

Ahhhhh I see. Ex spouse, trying to show you earn less than you do to avoid paying your way....

Ahhhhhh - No - you don't.

I don't avoid paying, never have, never will, have always paid for everything. What I am trying to avoid is total wipeout, which does not help any of the parties involved. The law is not rational, and couldn't give a tulip about what is in the parties' interests. Self preservation whilst continuing to do the right thing is not something to be ridiculed.

Not having ever used an Umbrella, I was curious as to whether they can hold back wages. Which has been answered, thanks.

[Wanderer]

If being paid via an Umbrella, can I choose to take less, and leave some 'unpaid salary' back in the Umbrella?

Nope.

[northernladuk]

Ahhhhh I see. Ex spouse, trying to show you earn less than you do to avoid paying your way....

Umbrella will be happy to accomodate that I am sure.

[BolshieBastard]

Just say 'No!' to brollies. Period. Full stop. Ever.

I thenk yew

[northernladuk]

You do know we have an Umbrella specific section of the forum?

The umbrella is your employer so I think that will answer your question.

If you explain why you would want to do this there maybe other ways to meet your ends... I doubt it but it's worth a punt.

[pushingpixels]

Although I run a Ltd (have done for a few years) I may need to go through an umbrella (for various reasons, earning less etc). Despite looking at all the FAQs and guides etc, I really can't find any answers to the following question:

If being paid via an Umbrella, do I have to take the exact, full salary due (due to invoices raised) or can I choose to take less, and leave some 'unpaid salary' back in the Umbrella? I'm thinking that this won't be possible, but am unsure. Obviously there is some kept back for holidays etc but this isn't what I'm asking.