Agreed Deductions? Employment costs? Atlantic Umbrella !!!

[LisaContractorUmbrella]

"they should also NOT be deducting any money for you for sick pay or any other statutory payment as these are the legal responsibility of the umbrella company as your employer"

How do you deal with holiday pat Lisa, since everybody now has a right to (I think) 28 days paid holiday. That is greater than 10% so obviously come outof the funds generted by your customers. How does it get drescribed on statements etc (if atall).

Holiday pay was a nightmare to work out to be honest - when the EC Working Time Directives were introduced and rolled up holiday pay was no longer allowed I spent many, many hours on the phone to HMRC, BIS and even Brussels to work out a way that umbrella companies could deal with holiday pay and still remain compliant but also solvent - 28 days at £1000.00 per day when our margin is only £95.00? Well you do the maths. The employment contract we use is based on the London Living Wage and this is payable to our employees regardless of whether or not we receive funds from the agency/client (a requirement of an overarching contract). Holiday pay is therefore dealt with in the same way i.e. it is not based on the contract value. We deduct a pro-rated amount each week/month which is then paid back to the contractor when they take holiday or when they leave our employment

[ASB]

"they should also NOT be deducting any money for you for sick pay or any other statutory payment as these are the legal responsibility of the umbrella company as your employer"

How do you deal with holiday pat Lisa, since everybody now has a right to (I think) 28 days paid holiday. That is greater than 10% so obviously come outof the funds generted by your customers. How does it get drescribed on statements etc (if atall).

[LisaContractorUmbrella]

Employees NI is 12% after allowances and is capped - employer's NI is 13.8% and is uncapped so, if your earnings are high there could be quite a large differential between the two amounts. The umbrella company you signed with should have explained all this to you and should be able to give you a break down of the deductions - they should also NOT be deducting any money for you for sick pay or any other statutory payment as these are the legal responsibility of the umbrella company as your employer

[TykeMerc]

Employers and Employee's NI as a contractor I know is paid but I can't believe these guys I had the same issue years ago with parasol, I honestly do not know how ppl put up with this day light robbery

So you were familiar with how umbrella companies work and how they make deductions due to working through Parasol in the past yet you signed up with another umbrella?

Read the terms and conditions before you sign up.

Go Ltd rather than use an umbrella, that way you have complete control and responsibility for your own payroll.

[ASB]

The amount equivalent to ers ni obviously comes from your billables. As obviously does holiday pay. It cant be rolled up into your rate. What arrangements did you agree to for payment of holiday pay?

There is no legal requirement for sick pay though.

Employment costs are quite high, and where are they going to come from? The tiny fee you pay the umbrella or your billable?

It will be in the agreement. If you didnt understand the agreement I wonder why you signed it. Did you get any illustrations? Did you understand them?

Your apparent total lack of understanding doesnt make your slanderous comments appropriate. (Yes I know they are written which would more normally be libellous. But that isnt really current judicial thinking on bb comment).

Post up what you signed. It will probably be simple to explain.

[eek]

Phone up and ask them. Unless you know the facts, moaning on an online forum just makes you look like an idiot...

[Scruff]

I think that you will be mildly surprised in that you signed the contact accepting their terms?

Don't think that you can claim it back though, so find another, or go Ltd?

[delboy]

Hi folks

Can anyone tell me if I can demand money back from a umbrella company, they never told me when signing up id be paying 'employment costs' after robbing most of my wage they tell me they charge 13.8 % and this is made up of employers NI and rest is for holiday/sick pay etc etc however this is over £400 and employees NI is just over £120 usually employers NI is about the same or little more so I am guessing the other £300 they have robbed me is for sick pay etc etc


Employers and Employee's NI as a contractor I know is paid but I can't believe these guys I had the same issue years ago with parasol, I honestly do not know how ppl put up with this day light robbery