First time contracting

[lucyclarityumbrella]

And this is to show you how much I love explaining it...

http://forums.contractoruk.com/umbre...loyers-ni.html

[lucyclarityumbrella]

It's luck Lucy loves explaining it to people then

[northernladuk]

It's luck Lucy loves explaining it to people then

[kristen330]

Not sure I would agree with that "simple" calculation, via an umbrella the standard rate for most contractors is between 52 and 56% take home. Best way to get a take home is to actually speak to the brolly and make sure they explain it all properly for you so you don't get caught out

I was trying to explain that the gross via contracting isn't really the gross due the the employers ni. When I started I wasn't aware of this, and if I had known this, I'd have asked for an uplifted rate to factor this in. Why the hell should an employee have to pay the employers ni? So many noobs are being screwed over by this, and the agencies don't give a toss to bother explaining it properly.

[lucyclarityumbrella]

Whatever rate they're offering you, do this: (Weekly rate x 0.862)-£15 umbrella fees. This is what you will be taxed and charged employees ni on. If you are happy with the rate after the above calculation, go with it.

Not sure I would agree with that "simple" calculation, via an umbrella the standard rate for most contractors is between 52 and 56% take home. Best way to get a take home is to actually speak to the brolly and make sure they explain it all properly for you so you don't get caught out

[kristen330]

Hi,

I am in between jobs and the company who wants to hire me wants me to contract for 2months before they hire me full-time.

I have never contracted previously. What's the best to do this?

Shall I go through an umbrella company? Can anyone recommend good ones who don't charge enormous fees?

Shall I setup a business?

is there a way for the company to get me on their payroll?

Many thanks
Seb

Something sounds amiss here. They want you to work for 2 months, through an agency, before hiring you on a permanent basis? Is that it? Have they already offered you the perm role, or is this 2 month contract kind of a 'probation', which you have to pass to get a permanent contract?

Either way, if you decide to take the 2 month contract and use an umbrella company make sure you double check your rate and factor in the umbrella company fees (normally £15-30/wk), and 13.8% for employers ni, which they will make you pay. I found out the hard way that I had to pay employers NI when an agency called Allen lane screwed me over and failed to tell me this would come out of my rate instead of uplifting my rate to factor this in. Btw, do avoid Allen lane. They are not good.

Whatever rate they're offering you, do this: (Weekly rate x 0.862)-£15(or up to £30) umbrella fees. This is what you will be taxed and charged employees ni on. If you are happy with the rate after the above calculation, go with it.

Any questions please ask.

[lucyclarityumbrella]

Shall I go through an umbrella company? Can anyone recommend good ones who don't charge enormous fees?
Seb

Happy to have a chat with you Sebastienj, all I would say is that searching for a brolly purely based on cost is maybe not the best way to look at this. The umbrella is going to be handling your money, so go with someone you trust and someone who will look after you and your cash

[WTFH]

If you look to the right of this page you'll see links to a section on umbrella companies.
Lucy at Contractor Umbrella posts on here quite a bit, she would be one worth speaking to.
If you see a company that is offering you a very high take home compared to others, best to avoid it as they are probably doing something dodgy. Most of them will give you a similar level of return.

[Sebastienj]

Hi guys for the advice. Do you have any recommendations for a good umbrella company with a competitive rate?

No they won't rip me off. It is just that I have few things to untangle and also they only got authorisation to get a fulltime hire from the 1st of October but they would like me to start ASAP.

Seb

[BrilloPad]

Umbrella is the way to go.

It is odd that a company wants you on contract rather than a probationary period. Are they trying to rip you off on the rate?

[Bee]

If it's your first contract and you don't know if will be a long term contract I would go for an umbrella comp.

[Sebastienj]

Hi,

I am in between jobs and the company who wants to hire me wants me to contract for 2months before they hire me full-time.

I have never contracted previously. What's the best to do this?

Shall I go through an umbrella company? Can anyone recommend good ones who don't charge enormous fees?

Shall I setup a business?

is there a way for the company to get me on their payroll?

Many thanks
Seb