Reply to: Everything you ever wanted to know about umbrella companies but were afraid to ask...

[lucyclarityumbrella]

You are my Umbrella and that is what I determine my contract with you says. However, my ELO says different......

When should I get grumpy? or shall I stay at slightly irritated?

If the invoice is overdue, then you can be paid NMW - if you drop me an email and let me know your name I can look into it this end and speak with the ELO.

[Banshee]

As Lisa said the minimum wage should be payable to you regardless of whether or not the umbrella company receives funds from the agency/client and the bonus is payable upon receipt of said funds. You must go back to your contract of employment with them to determine what they have said.

You are my Umbrella and that is what I determine my contract with you says. However, my ELO says different......

When should I get grumpy? or shall I stay at slightly irritated?

[lucyclarityumbrella]

Unfortunately, and unless something has changed since the above was written and posted, I've just been told by my Umbrella that they CANNOT pay me NMW until the end client has paid them....

Who is right? the above advice or my Umbrella?

As Lisa said the minimum wage should be payable to you regardless of whether or not the umbrella company receives funds from the agency/client and the bonus is payable upon receipt of said funds. You must go back to your contract of employment with them to determine what they have said.

[Banshee]

Umbrella - minimum wage

The contract of employment that you sign with your umbrella company should indicate that you will receive a minimum wage salary and a profit related bonus. The minimum wage should be payable to you regardless of whether or not the umbrella company receives funds from the agency/client and the bonus is payable upon receipt of said funds.

As with any other UK employer an umbrella company has a legal responsibility to pay employer's national insurance contributions to HMRC; the contract rate will be paid to the umbrella company by the agency/client and, from this, the umbrella will fulfill this legal responsibility and will retain their margin (usually £25-£30 per week). The balance is your salary which is then subject to PAYE income tax and employee's national insurance deductions.

Again, as with any other employer, if you decide that you no longer want to work with your umbrella company, you will be required to give notice - usually 1 month.

HTH

Unfortunately, and unless something has changed since the above was written and posted, I've just been told by my Umbrella that they CANNOT pay me NMW until the end client has paid them....

Who is right? the above advice or my Umbrella?

[TheFaQQer]

http://mybroadband.co.za/vb/attachme...4&d=1396242100

[NickNick]

Or something you do to get the atmosphere going at a party.

Play Agadoo by Blakc Lace?

[LisaContractorUmbrella]

Not this time Lisa. More a link to something you do with a big reinforced ship in the Arctic.

Or something you do to get the atmosphere going at a party.

Ok, you've lost me

[One Click Group]

Not this time Lisa. More a link to something you do with a big reinforced ship in the Arctic.

Or something you do to get the atmosphere going at a party.

[LisaContractorUmbrella]

Googling the director's full name brings up some interesting results.

Just saying......

A connection with a company who's name sounds like a desert nomad's perchance?

[One Click Group]

Googling the director's full name brings up some interesting results.

Just saying......

[eek]

Umbrella 65% or so
Limited - 70% to 84% depending on rate, share structure and expenses..

Anything that isn't your own limited company and is offering much above 70% is probably illegal or pulling tricks... There was a great one a while back that not only screwed up your personal relationship with HMRC but also screwed up your pension....

[cojak]

Obviously, you are right guys. For sure I do not thik that 90% is feasible staying in line with tax laws, although rates like 65% seem a little bit low!

I really thank you for your help, I will read as much as I can and I will come back.In the meanwhile, if anyone has something to propose , do not hesitate please.

65% is about right for a normal umbrella.

[igoutas]

Obviously, you are right guys. For sure I do not thik that 90% is feasible staying in line with tax laws, although rates like 65% seem a little bit low!

I really thank you for your help, I will read as much as I can and I will come back.In the meanwhile, if anyone has something to propose , do not hesitate please.

[TykeMerc]

I can't recommend either company as I've never come across TEK and Parasol while being long established I've heard some negative comments about.

That being said does 90% retention sound sensible or maybe far too good to be true? Just think about what the prevailing rate of tax is and do the basic sums add up?

Anyone signing up for a scheme these days really does need their head examining.

[cojak]

Hi everyone.

I will start as a contractor from the 1st of July for my first time. I am going to choose Umbrella company for starters but I would like to ask you the following.
I have spoken with Parasol and they told me about 65% take home. Also, I aksed for TEK umbrella to calculate me the same and they told me nearly 90% take home.
So I am skeptical about both of them... What is the safer company to start with according to your experience?

Thank you in advance,
Giannis

First, read this http://forums.contractoruk.com/hmrc-...following.html

Next, read these threads. HMRC Scheme Enquiries

Then do your research. This company has been incorporated for just over one year but it is late with it's company accounts.
It's registered address is a post-drop with over 20 companies using the same address for their registered premises.

Don't go with an umbrella that will drop you in it with the tax man.