Advertised Hourly Rate (net of umbrella)

[helpFul]

[...]
Just seen my first weeks [sic] payslip, and the money is lower than I expected, gone back and found that the rate I have been quoted is an "umbrella rate", so therefore the additional money I was expecting will not be forthcoming.
I have never been for job [sic] where I have been offered a rate in this manner, and its [sic] obviously to inflate what is a very low rate. Is this common place?

What "additional money" did you expect, and whence?

[LisaContractorUmbrella]

Think we may need some more info for this one then

[Kanye]

This doesn't make sense.

If they've advertised a rate of £100/week and the umbrella take fees + national insurance + tax and give you say £60 then thats normal.

If they've advertised a net rate of £60 as the day rate that is not standard, but shouldn't come as a surprise.

[RasputinDude]

It sounds as though the OP thought that his salary would be the rate that was agreed in the business to business contract between the agency and the umbrella company whereas in reality it would be that rate less the amount that the umbrella company has to, by law, pay to HMR&C for employer's NI and their margin.

I would agree with you, but then it makes this nonsense.

in this case the agency advertised the role at the rate paid AFTER after the adjustments, to make the rate appear higher than it actually

Which I don't really understand. How can the rate after adjustments appear higher than it would before the umbrella took its cut?

[LisaContractorUmbrella]

It sounds as though the OP thought that his salary would be the rate that was agreed in the business to business contract between the agency and the umbrella company whereas in reality it would be that rate less the amount that the umbrella company has to, by law, pay to HMR&C for employer's NI and their margin.

[cojak]

Actually on reflection I don't quite understand your position.

Does this mean that they gave you a rate 'after' Umbrella fees and you still have to pay those fees?

[cojak]

Not an issue with the Umbrella, the problem is (correct me if am wrong) but when an agency advertising a role, the rate advertised is BEFORE the adjustments made by the umbrella, in this case the agency advertised the role at the rate paid AFTER after the adjustments, to make the rate appear higher than it actually was, just wondered if anyone else had experienced this?

Of course it's commonplace. I get a rate and from that I have to pay my Corp Tax, NI, insurance and accountant (of course the rate is BEFORE VAT) etc. I don't actually get that. If you use an Umbrella you ought to know how much they deduct for tax, fees, expenses etx before the fional amount comes to you.

The only complaint I would have would be if they deducted those fees and I was a LTD company, or the Umbrella company lied to me on their fee structure before I used them.

Then I'd be on their doorstep, knocking very loudly...

[Wanderer]

in this case the agency advertised the role at the rate paid AFTER after the adjustments, to make the rate appear higher than it actually was, just wondered if anyone else had experienced this?

It doesn't matter what they ADVERTISE, have a look at what rate is in the CONTRACT YOU SIGNED. Is that how much the umbrella are invoicing to the agency and paying to you minus tax?

[Helpdesk67]

Advertised Hourly Rate (net of umbrella)

Not an issue with the Umbrella, the problem is (correct me if am wrong) but when an agency advertising a role, the rate advertised is BEFORE the adjustments made by the umbrella, in this case the agency advertised the role at the rate paid AFTER after the adjustments, to make the rate appear higher than it actually was, just wondered if anyone else had experienced this?

[northernladuk]

Have you spoken to your Umbrella? Not a lot we can do on just a question like that.

You could check the Umbrella section of this forum where all the other umbrella questions are. Someone might have spotted the same?

[Helpdesk67]

Advertised Hourly Rate (net of umbrella)

No, not tax N.I., just expenses etc.
Hourly rate is x, after going through an umbrella, it becomes y, after they take into account travel / meals etc. Never seen Y as the advertised rate.

[stek]

Advertised Hourly Rate (net of umbrella)

Tax/NI? - need more info brother...

[Helpdesk67]

After spending 6 weeks out, I took a role which is a lot further away from home than usual (staying with the in laws is the only way I can afford to take it)
Just seen my first weeks payslip, and the money is lower than I expected, gone back and found that the rate I have been quoted is an "umbrella rate", so therefore the additional money I was expecting will not be forthcoming.
I have never been for job where I have been offered a rate in this manner, and its obviously to inflate what is a very low rate. Is this common place?