Umbrella Monthly or Weeky Margins

[LWJ1985]

i have been obtaining quotes from umbrella companies and they are much cheaper! i would say shop around.

[mb31]

[northernladuk]

Professional through and through

*cough*

[lucyclarityumbrella]

Btw Lucy, I'm impressed by the break down on the Clarity calculator although I don't have a clue why the employer's NI is so much higher than the employee's. I do find it very difficult to think clearly so that's still meant to be a compliment. Plus you did well to skirt around my 'please flirt for my business' question.

Professional through and through

[mb31]

In the main it's because there is no upper earnings limit for Employer's NI.

Employee's NIC tops out at c£50k a year - above that you pay a reduced 2% compared to 12%.
Employer's NIC you pay 13.8% on everything above c£9k a year.

I will flirt for your business. However I don't run an umbrella company and also have a fairly spiky beard. Fair warning.

Thanks for the explanation.

It now becomes clear why you are called VelcroPower, I think we might be compatible because my landing strip is the soft loopy stuff.

[northernladuk]

Thank you all, I understand now. I will get around to calling umbrellas but I just don't want to get inundated with sales calls before Christmas because you know what they're like (present company excepted Lucy)

Why not get one of us to do it for you?

My agency has an approved supplier (kick back) list, I am quite attracted by the idea of Bermuda Umbrella for a bit of Winter sun but I don't want my money to disappear into the HMRC triangle. Is there any reason why I can't insist on going for Sensible Umbrella (not listed as approved but fully compliant)?

Lots but you answered your own question in the brackets.

[VelcroPower]

Btw Lucy, I'm impressed by the break down on the Clarity calculator although I don't have a clue why the employer's NI is so much higher than the employee's. I do find it very difficult to think clearly so that's still meant to be a compliment. Plus you did well to skirt around my 'please flirt for my business' question.

In the main it's because there is no upper earnings limit for Employer's NI.

Employee's NIC tops out at c£50k a year - above that you pay a reduced 2% compared to 12%.
Employer's NIC you pay 13.8% on everything above c£9k a year.

I will flirt for your business. However I don't run an umbrella company and also have a fairly spiky beard. Fair warning.

[mb31]

Thank you all, I understand now. I will get around to calling umbrellas but I just don't want to get inundated with sales calls before Christmas because you know what they're like (present company excepted Lucy)

My agency has an approved supplier (kick back) list, I am quite attracted by the idea of Bermuda Umbrella for a bit of Winter sun but I don't want my money to disappear into the HMRC triangle. Is there any reason why I can't insist on going for Sensible Umbrella (not listed as approved but fully compliant)?

Btw Lucy, I'm impressed by the break down on the Clarity calculator although I don't have a clue why the employer's NI is so much higher than the employee's. I do find it very difficult to think clearly so that's still meant to be a compliment. Plus you did well to skirt around my 'please flirt for my business' question.

[DolanContractorGroup]

Because they only have to run 1 payroll calc versus 4. Only need to do 1 payment versus 4. 1 invoice to the agency versus 4, 1 bit of cash matching versus 4 etc. Still have to process 4 weeks worth of timesheets but ultimately it's a *lot* easier to run monthly.

The margins are deducted prior to calculating tax so you get full Tax and NIC relief on it.

Fully agreed with this. It's just less work.

Also, there are many umbrella companies that do charge the monthly margin as weekly x 4, but some just do a discounted one as it looks more attractive to the contractor/agency.


Kind regards

Zeeshan

[lucyclarityumbrella]

And do these fees attract tax relief? I know that's a bit of a wishful question but I'm hoping a glamorous umbrella sales lady will say 'yes' for once in my life.

The margin should be taken from the gross contract rate ie before taxes.
Just be cautious of those that give a post tax figure to try and make it look cheaper!

[VelcroPower]

I was just looking at monthly umbrella margins vs weekly. For example, Danbro charges a standard margin of £22 per week/£66 per month. Sorry if I'm being a bit thick again but why is it cheaper to go monthly? £66 is only three weeks of Danbro's weekly rate whereas a month is at least 4 weeks.

And do these fees attract tax relief? I know that's a bit of a wishful question but I'm hoping a glamorous umbrella sales lady will say 'yes' for once in my life.

Because they only have to run 1 payroll calc versus 4. Only need to do 1 payment versus 4. 1 invoice to the agency versus 4, 1 bit of cash matching versus 4 etc. Still have to process 4 weeks worth of timesheets but ultimately it's a *lot* easier to run monthly.

The margins are deducted prior to calculating tax so you get full Tax and NIC relief on it.

[mb31]

Why don't you ask them?

You are going to have to do some of this yourself at some point.

Because I'm busy for most of this week and you'll know the answer off the top of your head. I just need to tease it out of you.

Plus it'll help cure your insomnia when you're up in the early hours of the morning posting on this forum.

[northernladuk]

Why don't you ask them?

You are going to have to do some of this yourself at some point.

[mb31]

I was just looking at monthly umbrella margins vs weekly. For example, Danbro charges a standard margin of £22 per week/£66 per month. Sorry if I'm being a bit thick again but why is it cheaper to go monthly? £66 is only three weeks of Danbro's weekly rate whereas a month is at least 4 weeks.

And do these fees attract tax relief? I know that's a bit of a wishful question but I'm hoping a glamorous umbrella sales lady will say 'yes' for once in my life.