Reply to: Advice on using an umbrella company for first time (& query about why contract with u

[northernladuk]

It would indeed but not great enough to sacrifice 7 day payment terms, which is the one really good thing I'm getting out of the arrangement.

Might as well be in nanoseconds compared to how long it usually takes via ltd company!

But that's 7 days from a company you've got concerns with. I'd rather 14 days from a company I trust but you are doing the right thing with your diligence.

[ginjar]

Are they offering to sign you up to Professional Passport as well?

No, Professional Passport is just something that came up when I was searching for stuff about them.

My due diligence usually amounts to Googling, "[name] + scam", "[name] + avoid". Not sure how effective that is - just better than nothing, maybe.

Right - I'm getting back to the beach, these paddle surfs aren't going to paddle themselves .

[ginjar]

More than happy to speak with them and see what we can do from this end.

Thanks but it is just a four week contract and not sure how much I'll be using umbrellas so as long as these guys work for now I'll stick with them - but I'll bear it in mind for future.

[ginjar]

I would be more worried that you cannot get through to them at this early stage

Yeah, not ideal, but they've generally been good when I do get through - and very quick to get back after I rang up the agency.

[ginjar]

Wouldn't it be great if the MD posted on here and can answer your questions for you hey

It would indeed but not great enough to sacrifice 7 day payment terms, which is the one really good thing I'm getting out of the arrangement.

Might as well be in nanoseconds compared to how long it usually takes via ltd company!

[TheFaQQer]

For what it's worth, MangoPay are listed as an approved provider here, https://www.professionalpassport.com...id=4&agnid=276.

Are they offering to sign you up to Professional Passport as well? That used to be the modus operandi in the past, and given how close that seemed to be to the current PS IR35 rules, I'd be wary if they are.

I thought Crawford Temple had moved on to focus on PRISM but I guess not.

[lucyclarityumbrella]

Hey,

The agency did say that they could talk to another umbrella company, such as Contractor Umbrella, and try to bring the time to payment down.

* I'm not too happy with MP's contract not stipulating any details of my rate. Under payment, it says that I'll be paid the national minimum wage plus a bonus. But there is no mention of how much of a bonus. Is this normal? Is there any way to include what I actually expect to receive in remuneration as part of the contract? (I've tried to get in touch with MP about this but they're not picking up. I'm on holiday so ... I'm not spending the day chasing them!)

Thanks again.

More than happy to speak with them and see what we can do from this end.

* this is standard, the contract rate is calculated on the basic plus bonus (plus any holiday paid back if applicable) less any pension.

[lucyclarityumbrella]

Wouldn't it be great if the MD posted on here and can answer your questions for you hey

I would be more worried that you cannot get through to them at this early stage

[northernladuk]

There are a few things I'm still not sure about:

* MangoPay are saying that I can claim some expenses as long as I don't fall under SDC (& that I can do the SDC Assessment when I start the contract). They've said that this could include 10GPB subsistence/day and possibly transport.
* The worst-case scenario if going with a dodgy umbrella appears to be that they don't pay what's due to HMRC. MP have given me a breakdown and it seems legit, I guess as long as what they show me on my payslip shows enough tax being paid then that's ok?
* I'm not too happy with MP's contract not stipulating any details of my rate. Under payment, it says that I'll be paid the national minimum wage plus a bonus. But there is no mention of how much of a bonus. Is this normal? Is there any way to include what I actually expect to receive in remuneration as part of the contract? (I've tried to get in touch with MP about this but they're not picking up. I'm on holiday so ... I'm not spending the day chasing them!)

Thanks again.

Wouldn't it be great if the MD posted on here and can answer your questions for you hey

[northernladuk]

That's normal. The purpose is to ensure you still get holiday pay (which you legally have to receive) from your income. Hence the bonus is something like

bonus = total income - minimum wage for (weeks worked + holiday period) and it continually changes due to how the holiday calculations work. Hence they can't give you an actual figure...

Indeed.. Latter end of this article.

How a Compliant Umbrella Company works - All Umbrella Companies Are Equal

[eek]

* I'm not too happy with MP's contract not stipulating any details of my rate. Under payment, it says that I'll be paid the national minimum wage plus a bonus. But there is no mention of how much of a bonus. Is this normal? Is there any way to include what I actually expect to receive in remuneration as part of the contract? (I've tried to get in touch with MP about this but they're not picking up. I'm on holiday so ... I'm not spending the day chasing them!)

Thanks again.

That's normal. The purpose is to ensure you still get holiday pay (which you legally have to receive) from your income. Hence the bonus is something like

bonus = total income - minimum wage for (weeks worked + holiday period) and it continually changes due to how the holiday calculations work. Hence they can't give you an actual figure...

[ginjar]

Hey,

I did give Contractor Umbrella a ring and was happy with how they explained everything.

I've ended up going with MangoPay because they seem fine and my agency said that, although they will let me use any brollie I want, the payment terms for those on their PSL list are 7 days; whereas it's 30 for others.

The agency did say that they could talk to another umbrella company, such as Contractor Umbrella, and try to bring the time to payment down.

For what it's worth, MangoPay are listed as an approved provider here, https://www.professionalpassport.com...id=4&agnid=276.

There are a few things I'm still not sure about:

* MangoPay are saying that I can claim some expenses as long as I don't fall under SDC (& that I can do the SDC Assessment when I start the contract). They've said that this could include 10GPB subsistence/day and possibly transport.
* The worst-case scenario if going with a dodgy umbrella appears to be that they don't pay what's due to HMRC. MP have given me a breakdown and it seems legit, I guess as long as what they show me on my payslip shows enough tax being paid then that's ok?
* I'm not too happy with MP's contract not stipulating any details of my rate. Under payment, it says that I'll be paid the national minimum wage plus a bonus. But there is no mention of how much of a bonus. Is this normal? Is there any way to include what I actually expect to receive in remuneration as part of the contract? (I've tried to get in touch with MP about this but they're not picking up. I'm on holiday so ... I'm not spending the day chasing them!)

Thanks again.

[Dan@OrangeGenie]

I have been offered a contract with a university client.

I was told that the contract would fall under IR35 and they would try to get me a higher gross rate to cover the difference (normally I run contracts through my ltd company).

The final rate agreed was 500/day. The take home pay from this was calculated at roughly 285/day.

Their recommended umbrella company is Mangopay - but they mentioned I could choose any I wished.

They said that it would be easy to set up - and I had a quick chat with Mangopay.

Does anyone have any experience with them and know if they are good and trustworthy?

I am also wondering why the contract should fall under IR35.

I don't know why a university would be affected by the recent changes since, legally speaking, they are private institutions (even if they receive lots of state funding). I couldn't get a clear answer and didn't want to press it since I am happy to lose some money and err on the side of caution for this gig.

The main reason for asking is to know whether I should expect to have to work through umbrella companies when working with universities in the future.

Also:

Should I push to use an umbrella company of my own choosing / one that one of you can recommend here?
How can I check the calculations that the agency has given me to work out take-home pay?
Is there anything else I should be looking out for before choosing an umbrella company?

Thanks.

Happy to help if necessary? - we help contractors looking to use Umbrellas or Limited companies, so have all bases covered.

[lucyclarityumbrella]

Thanks for all the responses. I'll definitely check out Contractor Umbrella.

Hi ginjar - if you want to call, I am more than happy to talk through things with you

[northernladuk]

Thanks for all the responses. I'll definitely check out Contractor Umbrella. Not sure about pensions - up until now I've been saving up to buy property as security.

Makes sense but for a short(ish) term gig tax efficiency might be a better way to go.