Everything you ever wanted to know about umbrella companies but were afraid to ask...

[LisaContractorUmbrella]

hi to everyone,
I already have one umbrella company,but because I work in construction always I am with different job agency,one of this agency dont want work with my umbrella company,and they offered me another umbrella,and I said No because I don't want mess up my tax,they said if I want get paid they only use their umbrella only and for
more funny this umbrella only can paid me if I am self employed if not they cant pay me.
have the right the job agency to forced me to choose one more umbrella company? have the right to forced me to become self employed? because afeter the more than six month they have not pay me and I still PAYE.
thank you
and sorry for my english

Your agency may have decided that they only want to work with certain umbrella companies - it is quite common as an umbrella company that does not work properly may bring trouble for the agency. If you work in construction it may be that you should be working under the CIS scheme HM Revenue & Customs: Construction Industry Scheme and not all umbrella companies work in this way.

[schisnall78]

I used Umbrella Calculator (.co.uk) (I think), to figure out how I wanted to get paid and they passed me on to a company called Contractor Unlimited who were really helpful.

[timittim]

Ive heard that you can lose a lot of money going with an umbrella company? what percentage do they take?
(im new to all this, its just good to know my options)

[LisaContractorUmbrella]

Ive heard that you can lose a lot of money going with an umbrella company? what percentage do they take?
(im new to all this, its just good to know my options)

You have the option, as a contractor, to set up your own Limited Company, work with an umbrella company or use another type of intermediary. If you are inside IR35 (lots of advice on the site about this) then your take home through an umbrella or your own Ltd Co will be roughly the same. If you are outside IR35 and you earn £20,000+ per year then you would be better off working through your own Ltd Co. Other intermediaries promise take home pay of 80%+ but will almost certainly be operating a tax avoidance scheme; if you consider one of those as an option I would take the time to delve a bit further into this site before you make a decision - specifically here: HMRC Scheme Enquiries and here: http://forums.contractoruk.com/accou...ct-2008-a.html

[northernladuk]

Ive heard that you can lose a lot of money going with an umbrella company? what percentage do they take?
(im new to all this, its just good to know my options)

Try researching them then.

[helloumb]

Need help

I was offered a job but later recruiter saiid I have to sign agreement with an Umbrella company. The rate promised is 25 pounds per hour but the agreement of the Umbrella company says it is minimum wage which I refused to sign .

Why is this? They do not want to mention the actual rate in the agreement?

If I sign and accept , Is there any possibility that they will pay the minimum wage only as per the agreement ?

If I join Can I resign from Umbrella agreement anytime I want giving a notice or a notice period or if the contract is for one year or two I have to work any company they do ask me even relocating myself to place?

Please advise

[LisaContractorUmbrella]

I was offered a job but later recruiter saiid I have to sign agreement with an Umbrella company. The rate promised is 25 pounds per hour but the agreement of the Umbrella company says it is minimum wage which I refused to sign .

Why is this? They do not want to mention the actual rate in the agreement?

If I sign and accept , Is there any possibility that they will pay the minimum wage only as per the agreement ?

If I join Can I resign from Umbrella agreement anytime I want giving a notice or a notice period or if the contract is for one year or two I have to work any company they do ask me even relocating myself to place?

Please advise

The contract of employment that you sign with your umbrella company should indicate that you will receive a minimum wage salary and a profit related bonus. The minimum wage should be payable to you regardless of whether or not the umbrella company receives funds from the agency/client and the bonus is payable upon receipt of said funds.

As with any other UK employer an umbrella company has a legal responsibility to pay employer's national insurance contributions to HMRC; the contract rate will be paid to the umbrella company by the agency/client and, from this, the umbrella will fulfill this legal responsibility and will retain their margin (usually £25-£30 per week). The balance is your salary which is then subject to PAYE income tax and employee's national insurance deductions.

Again, as with any other employer, if you decide that you no longer want to work with your umbrella company, you will be required to give notice - usually 1 month.

HTH

[EBTContractor]

What is a typical return for Umbrealla vs Ltd?

[eek]

What is a typical return for Umbrealla vs Ltd?

That is an irrelevant question as the real question should be what are your working conditions (partly regarding IR35, but other items as well). For some people an umbrella is an appropriate solution, for others it won't be.

The question you ask is the reason so many people have ended up in the hell that is BN66, and the current EBT mess which is why I won't answer it. Put bluntly return is irrelevant, you merely have the choice of two options based on how much hassle and work you want to undertake. Anything else is just a total and utter risk leading to long term pain and in some cases Suicide and divorce

No matter what the smooth talking salesmen claim....

[DonkeyRhubarb]

Would I be right in thinking that there isn't much difference in take home between Umbrella and Ltd inside IR35?