Reply to: Settle a question for me...

[SueEllen]

If you have a gig lined up to start in less than a couple of weeks and need a quick solution then I'd say go with one of the brollies who post on here. Parasol and Contractor Umbrella are the two I can think of immediatley. Any of the iffy ones that try and promote themselves here tend to get short shrift and are shown the door fairly quickly.

If you have more than a month to spare you should think seriously about going down the Ltd Company + Accountant route. It doesnt take long to get set up, you can do it all yourself or you can pay an accountant to do it for you. Any of the accountants who post on here regularly are generally well regarded and seen as trustworthy. SJD and Nixon Williams spring to mind but there are probably others I can't think of at the moment. (Edit: In Touch post here regularly as well)

At this point in time you are probably not in a position to make a proper judgement about going down the offshore route or using some of the more exotic offerings in the market. The ones that offer QC opinions on their Tax Management systems and such like.

In the interests of fairness I would make it clear I use none of the above companies. I run my own Ltd and do my own accounts.

WHS

There are a few other accountancy guys who post on here but they have decided for some reason not to make it clear they are accountants that deal with small businesses.

[DaveB]

Its been a bit of a nightmare trying to sort anything out job-wise over the last few months, two contract roles evaporated prior to signing on the dotted line, then trying to go the best route with umbrella companies, etc, dealing with (apparently) less than scrupulous agents..
Sticking it out though like the fool i am !!

If you have a gig lined up to start in less than a couple of weeks and need a quick solution then I'd say go with one of the brollies who post on here. Parasol and Contractor Umbrella are the two I can think of immediatley. Any of the iffy ones that try and promote themselves here tend to get short shrift and are shown the door fairly quickly.

If you have more than a month to spare you should think seriously about going down the Ltd Company + Accountant route. It doesnt take long to get set up, you can do it all yourself or you can pay an accountant to do it for you. Any of the accountants who post on here regularly are generally well regarded and seen as trustworthy. SJD and Nixon Williams spring to mind but there are probably others I can't think of at the moment. (Edit: In Touch post here regularly as well)

At this point in time you are probably not in a position to make a proper judgement about going down the offshore route or using some of the more exotic offerings in the market. The ones that offer QC opinions on their Tax Management systems and such like.

In the interests of fairness I would make it clear I use none of the above companies. I run my own Ltd and do my own accounts.

[nealus]

There are lots of independent guides on the 'true' umbrella companies out there and as DaveB says, some post on here.

The only difference you should see between umbrellas is their fee.

Avoid anyone who says they are HMRC compliant or approved. HMRC does not approve anything.

Run a mile from anyone who says you can claim what you like for travel and subsistence without keeping the receipts. Always keep your receipts regardless of whether or not the umbrella you choose to work with asks to see them.

And take the umbrella league tables with a pinch of salt. These are largely owned by umbrella companies and you have to pay to be included in the top ten sometimes. Most of the main players in the market refuse to do this.

There have been two umbrellas in the last week that have gone under and left their contractors in the lurch so please do your home work. If it looks to good to be true then it usually is.

The reputable umbrella companies will be giving you a full contract of employment and all the employment rights that come with that. You should have as much access to their HR support as I do sat here in head office.

And it does sound like the agent is on dodgy ground re the Bribery Act.

Thanks for the above. It is a bit of a minefield and choosing correctly is proving a challenge. I saw the Tract thread in CUK today and only lends itself to doing the homework before going with anyone. Paying more for a good umbrella service may be worthwhile for a novice like me..

[ilovehr]

Darwin..

Darwin are not an umbrella......

[Steven@Parasol]

Its been a bit of a nightmare trying to sort anything out job-wise over the last few months, two contract roles evaporated prior to signing on the dotted line, then trying to go the best route with umbrella companies, etc, dealing with (apparently) less than scrupulous agents..
Sticking it out though like the fool i am !!

There are lots of independent guides on the 'true' umbrella companies out there and as DaveB says, some post on here.

The only difference you should see between umbrellas is their fee.

Avoid anyone who says they are HMRC compliant or approved. HMRC does not approve anything.

Run a mile from anyone who says you can claim what you like for travel and subsistence without keeping the receipts. Always keep your receipts regardless of whether or not the umbrella you choose to work with asks to see them.

And take the umbrella league tables with a pinch of salt. These are largely owned by umbrella companies and you have to pay to be included in the top ten sometimes. Most of the main players in the market refuse to do this.

There have been two umbrellas in the last week that have gone under and left their contractors in the lurch so please do your home work. If it looks to good to be true then it usually is.

The reputable umbrella companies will be giving you a full contract of employment and all the employment rights that come with that. You should have as much access to their HR support as I do sat here in head office.

And it does sound like the agent is on dodgy ground re the Bribery Act.

[nealus]

Ah....The Umbrella Company Alternative.....as stated on their website. Hmmmmm....

Its been a bit of a nightmare trying to sort anything out job-wise over the last few months, two contract roles evaporated prior to signing on the dotted line, then trying to go the best route with umbrella companies, etc, dealing with (apparently) less than scrupulous agents..
Sticking it out though like the fool i am !!

[Wobblyheed]

Darwin..

Ah....The Umbrella Company Alternative.....as stated on their website. Hmmmmm....

[nealus]

So who is the recommended umbrella?????????

Darwin..

[VectraMan]

So who is the recommended umbrella?????????

Is it Tract? I hear they're good.

[DaveB]

That's about the only worthwhile contribution I've ever seen from you.

Just say no to brollies who make unrealistic claims about retained income

FTFY. There are actually a good number of brollies out there who provide a decent service and dont make unrealistic claims or operate dodgy expenses schemes. Some of them actually post on here as well

[BolshieBastard]

STEP AWAY FROM THE MYTHICAL UMBRELLA COMPANY

If you could take 80% home through an umbrella, without consequence, don't you think every person employed and contracted in the UK would be doing it???

That's about the only worthwhile contribution I've ever seen from you.

Just say no to brollies

[Wobblyheed]

So who is the recommended umbrella?????????

[nealus]

Either they are lying or their recommended umbrella involves a tax avoidance scheme and these are widely considered to be risky.

Who is the umbrella they are recommending?

I haven't used the agency before now so the recommendation is a mystery from the initial contact I have had. Although looking at the discussion above it is clear that as I intend to go with an umbrella anyway, avoiding the LTD hassles (because I am a weakling!), a review, etc is moot because HMRC are unlikely to prosecute someone who IS actually paying PAYE, etc..

[Wanderer]

The agent says through their 'recommended' umbrella I could recoup roughly 80% of that in take home.

Either they are lying or their recommended umbrella involves a tax avoidance scheme and these are widely considered to be risky.

Who is the umbrella they are recommending?

[yasockie]

New contract paying 300 p/d (inside IR35)

The agent says through their 'recommended' umbrella I could recoup roughly 80% of that in take home.

Looking on a popular umbrella company calculator it says I am looking at just over 60% as take home (claiming expenses of £100 a week)

I can't see how there can be such a discrepancy, unless dare I say it the agency is in cahoots and receives some kind of benefit from pushing people into their recommended umbrella friends..

Anyone know what is a more realistic return?

Thanks

Just so you understand, the agent is getting a further cut from the umbrella - hence him trying to con you.
If you're inside IR35 I guess there isn't much point in setting up an Ltd.
My first contract years ago was with Parasol and I wholeheartedly recommend them, but they've become pricey recently.