First Contract and First umbrella company

[nick w]

Thanks for the replies

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[Sausage Surprise]

Apart from the bit about illegally claiming expenses, that is...

I highlighted the bit my comment referred to.

[malvolio]

Wise words, wise words....also applies to agencies.

Apart from the bit about illegally claiming expenses, that is...

[Sausage Surprise]

None of them like it when you leave. So if you do leave then make sure they have paid your last invoice before you tell them that you are no longer working for them. Or just don't tell them you are leaving, string them along and let them think you will take another assignment with them but as it turns out, you never do.

If you don't do this then some of them are inclined to withhold expenses which you have claimed because you have only worked a single assignment with them. HMRC's rules say that if it was your intention that you would only work one assignment then your expenses are indeed not allowable but if this is just the way it turned out and you always intended to do multiple assignments then you are OK. Some umbrellas apply the more strict interpretation to this...

Wise words, wise words....also applies to agencies.

[Wanderer]

None of them like it when you leave. So if you do leave then make sure they have paid your last invoice before you tell them that you are no longer working for them. Or just don't tell them you are leaving, string them along and let them think you will take another assignment with them but as it turns out, you never do.

If you don't do this then some of them are inclined to withhold expenses which you have claimed because you have only worked a single assignment with them. HMRC's rules say that if it was your intention that you would only work one assignment then your expenses are indeed not allowable but if this is just the way it turned out and you always intended to do multiple assignments then you are OK. Some umbrellas apply the more strict interpretation to this...

[CoolCat]

Agree with the guys. As NLUK says - if it is your intention to only work on a single assignment with an umbrella company then your workplace will be considered permanent an you will have no entitlement to claim travel or subsistence expenses. These can only be claimed if you are travelling to a temporary workplace as defined by HMRC.

As JamesBrown and Wanderer say, with regard to take home pay - all umbrella companies work in exactly the same way - we all pay through PAYE, we can only give tax relief on costs that would be approved by HMRC as expenses - the only difference will be the umbrella company's margin and the level of service that you receive. You may see adverts from companies offering 85%+ take home pay but before you consider one of those I would have a read through here: HMRC Scheme Enquiries.

If you decide, for whatever reason, to leave your current umbrella company you will need to terminate your employment with them (there should be a notice period in your contract) and you will need to notify your agency of your intention.

Having worked (as a permie at the time) for several large consultancies where significant numbers, if not all, fee earning consultants were on contracts where they were contractually based at home - why is it that an umbrella cannot do the same? This little trick means that all travel away from home to client sites can be expensed, even if for long durations you are working on a client site. And also such staff can work for one end client for their entire time with the consultancy with no risk that the expenses will be questioned by the revenue. What is that is different about an umbrella and such consultancies for tax purposes?

[Zero Liability]

Trafalgar is quite good. Not the cheapest but their level of service is exemplary from my experience with them.

[Boney M]

Giant are awful, parasol are no better both to be avoided. there are better brollys out there

agreed

[Anonimouse]

Giant are awful, parasol are no better both to be avoided. there are better brollys out there

[Sausage Surprise]

Giant don't like it when you leave.

[LisaContractorUmbrella]

Agree with the guys. As NLUK says - if it is your intention to only work on a single assignment with an umbrella company then your workplace will be considered permanent an you will have no entitlement to claim travel or subsistence expenses. These can only be claimed if you are travelling to a temporary workplace as defined by HMRC.

As JamesBrown and Wanderer say, with regard to take home pay - all umbrella companies work in exactly the same way - we all pay through PAYE, we can only give tax relief on costs that would be approved by HMRC as expenses - the only difference will be the umbrella company's margin and the level of service that you receive. You may see adverts from companies offering 85%+ take home pay but before you consider one of those I would have a read through here: HMRC Scheme Enquiries.

If you decide, for whatever reason, to leave your current umbrella company you will need to terminate your employment with them (there should be a notice period in your contract) and you will need to notify your agency of your intention.

[Wanderer]

Some companies are more upfront than others about the composition of the various charges or "employment costs". You should be wary of any umbrella company that promises a "better return" than their competitors.

Despite an orchestrated campaign to convince us otherwise, a more generous expenses dispensation does mean you can claim more on your expenses but broadly speaking there is little or no difference in the dispensation allowances between umbrella companies so there is little benefit in switching.

If one looks better than the other then it's most likely because they have a way of obfuscating their figures to confuse the hell out contractors. However, if you earn more than about 30k/year then you probably want to go LTD rather than switching..

[jamesbrown]

With time being an issue I quickly moved on Giant but I have since seen better companies (Parasol) who give a better return..

Make sure you understand what you mean by "better return". All of these umbrella companies are operating under the same legislation, the only difference being their fees. Some companies are more upfront than others about the composition of the various charges or "employment costs". You should be wary of any umbrella company that promises a "better return" than their competitors. You should be looking for a better service/reputation, as the returns are fixed, other than the umbrella fees. There are many threads on here about various companies (see the Umbrella Companies subforum too).

FWIW, Contractor Umbrella has a good reputation for being upfront and the MD is a regular poster here (LisaContractorUmbrella).

[northernladuk]

If you change umbrellas after just one assignment you cannot claim expenses for that assignment I believe. You were employed for that assignment only so it becomes your permanent workplace.

[nick w]

So I have got my first contract role and was recommended Giant as being my umbrella company.

With time being an issue I quickly moved on Giant but I have since seen better companies (Parasol) who give a better return..

Its a 3 month contract which will role into a 6 month after

Is it common to move umbrella companies and is it easy?
Can I move after my 3 month contract ends or after one month?

Thanks
N