Reply to: Parasol - Employment Costs - extra charges??

[fred857]

Update 5 years on

I left Parasol shortly after starting this thread back in 2012.

I decided to go the limited company route instead of going with another umbrella co. I've used InTouch since for my accounting and have had a good experience. I would recommend them if asked.

[lucyclarityumbrella]

Also worth noting that if you are in rented or a b&b with access to cooking facilities the breakfast and dinner may not be allowable either!

[LisaContractorUmbrella]

Muddying the waters: surely it is theoretically possible that different umbrellas could be using scale rates for expenses and have a legitimately agreed higher scale rate than another.

Scale rates are only permitted for subsistence expenses and the rules are pretty clear - breakfast and dinner are only allowable in exceptional circumstances unless the contractor is staying away from home and staying in hotel so any difference really would be negligible

[ASB]

A legit brolly can offer no better return than any other - only difference in take home pay between 2 brollies should be down to their margin and nothing else.

Muddying the waters: surely it is theoretically possible that different umbrellas could be using scale rates for expenses and have a legitimately agreed higher scale rate than another.

[LisaContractorUmbrella]

I'd be amazed if any legit brolly was able to offer you a better return. Both Parasol and Giant fit that category.

A legit brolly can offer no better return than any other - only difference in take home pay between 2 brollies should be down to their margin and nothing else.

[skimpy]

hmmm

Good thing I found this thread about Parasol.
That's them off my list.

[thiswasmethen]

Parasol Employment Costs

Sweet, me too

Hi Spartan

I like you fell for the old Parasol B/S and have been ripped off it seems... Having contacted them I was amazed to find out the full extent of their tactics. They refuse to provide original voice recordings of my original call describing the their breakdown. After raising a complaint and grievance, they then added a contract to my profile without knowledge or consent, saying I accepted it. However, I took a screen shoot of my profile with them, when it did not contain a contract. Can you tell me if you managed to recover the employment costs from them and did you have to take them to court in order for them to pay? did they refuse to pay your wages as a result of you requesting a refund?

Thank you for sharing your insight on this company

thanks
thiswasmethen

[88zero]

I'd be amazed if any legit brolly was able to offer you a better return. Both Parasol and Giant fit that category.

With Giant there's no additional 'Employment costs', only their margin.

[LisaContractorUmbrella]

A shame they don't tell you about this hidden cost when you ask for an estimate on your net pay

Their solution is to claim more in expenses to offset against the national insurance.

I shall be going back to Giant after this whoa re much more straight forward and have no hidden costs.

When you say 'they', who are you referring to?? If it's an umbrella company they should certainly not be suggesting or orchestrating the claiming of extra 'expenses' if the costs haven't been incurred. ANY umbrella company that you contact should give you the same take home pay provided that you give them the same information each time on your rate and expenses incurred; the only difference should be any variance in their margin. Unfortunately some umbrella companies try to make their take home figure look better by including expenses in the calculation which have not been incurred - this may entice you through the door but you will definitely be in for disappointment when you open your first pay slip!

If there's one thing that an umbrella company should not be using as a marketing tool, it's the offer to 'increase' or 'maximise' your take home pay - if they're operating compliantly they can't it's as simple as that.

[Andy Hallett]

A shame they don't tell you about this hidden cost when you ask for an estimate on your net pay

Their solution is to claim more in expenses to offset against the national insurance.

I shall be going back to Giant after this whoa re much more straight forward and have no hidden costs.

I'd be amazed if any legit brolly was able to offer you a better return. Both Parasol and Giant fit that category.

[88zero]

A shame they don't tell you about this hidden cost when you ask for an estimate on your net pay

Their solution is to claim more in expenses to offset against the national insurance.

I shall be going back to Giant after this whoa re much more straight forward and have no hidden costs.

[LisaContractorUmbrella]

Ok, many thanks for all replies. Now it makes sense. Its actually very sad and ridiculously disappointing, how much is being deducted from poor people salary!

How have you been receiving payment up until now??

[gitanak]

Ok, many thanks for all replies. Now it makes sense. Its actually very sad and ridiculously disappointing, how much is being deducted from poor people salary!

[SueEllen]

National Insurance has 2 components:-

Employees NI which you're used to seeing on payslips

Employers NI which unless you're working via an Umbrella you don't see (it's hidden, but paid), but is paid by your employer. Your employer funds that by the money they make from you being an employee.

When an employer quotes a salary they have already taken off the cost of the employers NI they would be paying to employ you.

[TykeMerc]

Many thanks for your answers. Im enquiring about the EMPLOYMENT COST. I was charged NI, Income tax and Parasol Margin, which is correct, plus EMPLOYMENT COST(which Parasol Claim is for NI)? Why am i paying twice for NI? Parasol says that Employment cost is always charged if you work through umbrella company, which is not correct as im not charged this fee when i was working for another agency.

National Insurance has 2 components:-

Employees NI which you're used to seeing on payslips

Employers NI which unless you're working via an Umbrella you don't see (it's hidden, but paid), but is paid by your employer. Your employer funds that by the money they make from you being an employee.

Because you're using an Umbrella company and they EMPLOY you they are REQUIRED to pay Employers NI, that has to be funded from somewhere, that somewhere is the contract rate that the client or agent is paying you.

ANY Umbrella you worked this contract through would HAVE to pay the Employers NI and they take the money to pay that from the rate, they do tell you about it on their payment advice, will discuss it if asked and don't make a secret of the fact.

You really need to read what people have said on this thread (and many others on CUK) mid 60% retention via Umbrella is fairly average.