Good Umbrella Company

[LisaContractorUmbrella]

Oh having said that one Umbrella company said they could claim back the umbrella fees as an expense so it would normally cost £28.91pw but (nets down to £17.28 after tax relief) is that common practice seems a good idea?

The umbrella company will retain an amount from the gross income they received from the agency/client; this is referred to as a margin and represents the umbrella company's turnover. They shouldn't be charging a 'fee' and shouldn't be allowing their employees to claim tax relief on the amount - the reason being that a 'fee' could be considered by HMRC to be a charge for a VATable supply.

[ukmercenary]

Oh having said that one Umbrella company said they could claim back the umbrella fees as an expense so it would normally cost £28.91pw but (nets down to £17.28 after tax relief) is that common practice seems a good idea?

[ukmercenary]

contractorumbrella.com

Yes I did think about them think you get what you pay for so yes ill use them.

[TheFaQQer]

contractorumbrella.com

[AMH]

surely a high tax payer would be limited?

[ukmercenary]

Sorry I did search im sure this has been asked a million times not that I found it but can someone recommend a good umbrella company for me to use?

One company said this

'Register with us today and we will reduce our standard administration overhead (£27.50 per week worked) by over 50% to £11.99 per week worked. Further to this once tax relief is applied to the gross charge it means that as a high rate tax payer the actual true net cost to you would be no more than £4.12 per week or £6.52 per week as a basic rate tax payer. This offer is redeemable at the point of application only and subject to the submission of the following personalised discount code: ******** (choose the VIP option) Offer ends soon.'

Seems a good deal im sure they must make there money somehow.