jump ship to umbrella company

[LondonManc]

I said to a friend the other day that this will present a world of opportunities for a number of shysters to set up umbrella companies promising untold riches. As someone who was with an umbrella company which went bust (I saw the signs, some others weren't so blessed) I say be VERY careful. Focus on the reputation, not the (false) promises.

Absolutely correct. Based on a 100k per year contract, these are the sort of figures that you're looking at:

Employment Taxes £11,418 11%
Employee's NI £5,275 5%
Employee Tax £23,789 24%
Total All Tax £40,482 40%
CU Margin £1,302 1%
Total Net Income £58,220 58%

CU's margin is less than SJD's fees and they do everything, so all you need to do is work and get your timesheets raised and authorised.

[Elliegirl]

I said to a friend the other day that this will present a world of opportunities for a number of shysters to set up umbrella companies promising untold riches. As someone who was with an umbrella company which went bust (I saw the signs, some others weren't so blessed) I say be VERY careful. Focus on the reputation, not the (false) promises.

[lucyclarityumbrella]

It's been suggested to me that umbrella companies now, are using some sort of offshore process, to maximise pay.
Also can you recommend an umbrella which is upto speed with current changes for public sector contractors, who are faced with this gloomy future.

Unfortunately Awkward, these are not new - and many contractors have been caught out by these schemes, and are now facing some fun times with HMRC. More than happy to talk you through things if you want, I may not be able to provide a more positive future in terms of take home, but I can make sure that the future doesn't include being called on by the taxman

[GDL]

Percentage of gross

Just over 50% is normal - avoid 80% +, or hire a lawyer.... IMHO

[northernladuk]

For info on the respected brollies have a look at
http://www.allumbrellacompaniesareequal.com

Not sure how up to date it is though but Lucy also runs this site so knows her stuff.

[northernladuk]

Contractorumbrella. Lucy who is the MD is all over this and doing a lot of work towards it. She posts regularly in this part of the forum and the umbrella section giving people advice.

http://www.contractorumbrella.com

Avoid the offshore maximise pay outfits. Check the HMRC scheme forums for the utter nightmares these have left people in. A normal umbrella will be fine.

[Awkward]

I'm on contract in public sector & current agency is likely to force me to use an umbrella company.

If thats the route I have to take, I want to choose my own.

It's been suggested to me that umbrella companies now, are using some sort of offshore process, to maximise pay.

More info on this please.

Also can you recommend an umbrella which is upto speed with current changes for public sector contractors, who are faced with this gloomy future.