Public sector.... switch to umbrella, really?

**northernladuk** · 14 February 2017, 14:11

It's starting!!!! Hold on everyone....

**northernladuk** · 14 February 2017, 14:16

Firstly make sure you are talking to reputable umbrellas. Do NOT be tempted by offers of 80%+ take homes.

Also read the Public Sector forums. This has been discussed in great detail for many many months. Maybe not the exact figures of your take home, but it will give you an idea of what exactly going on and the timescales. This really should not be a surprise this late in the day. Pay particular attention to the risks of continuing in the same gig regardless of the implications to take home.

**LondonManc** · 14 February 2017, 14:18

Originally posted by likewise View Post

My agency has just informed me that on 6th of April im likely going to have to use an umbrella company for the public sector contract ive just started. In a nutshell, I like this contract because its a good rate and local. Ive been looking into it and out of a weekly earning of £1100, various umbrella companies are offering me take home pay of between £680 and £730.....to say I was shocked when I seen these figures is an understatement, apparently I cant claim much in the way of expenses. I knew i would take a drop in pay but was realistically expecting at least to take home £850, but they are going to be taking around £400 a week off my earnings!!!, does anyone know of any alternatives to this? or any way around it? it just seems absolutely ridiculous that im being stung with tax, ni and employers ni to the tune of £400 per week! seems far too high.

At the moment im thinking of looking for a new contract in the private sector or going perm, because I could probably get a perm job on only a few hundred quid less than that per month and get the benefits of holidays & sick pay.

Have a look at this:
http://forums.contractoruk.com/umbre...ey-differ.html

Lucy from Contractor Umbrella explains the reasoning behind it.

Going perm sounds best for you.

**eek** · 14 February 2017, 14:25

£680-730 seems to be about right depending on the margin the umbrella wants. See Umbrella Company PAYE Calculator | Contractor Umbrella (first calculator I found but on Bing).

As others had said your best bet is probably to try and go permanent....

**likewise** · 14 February 2017, 14:29

Originally posted by northernladuk View Post

Firstly make sure you are talking to reputable umbrellas. Do NOT be tempted by offers of 80%+ take homes.

Also read the Public Sector forums. This has been discussed in great detail for many many months. Maybe not the exact figures of your take home, but it will give you an idea of what exactly going on and the timescales. This really should not be a surprise this late in the day. Pay particular attention to the risks of continuing in the same gig regardless of the implications to take home.

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Thanks for your response, it did come as a bit of a shock to be honest, I don't really usually deal with this kind of thing myself (I leave the accountant to do stuff) and its the first time ive worked in the public sector. I am far more concerned about the take home pay, but as things stand I think ill be looking for a different gig in the private sector or go permanent....

**northernladuk** · 14 February 2017, 14:35

Originally posted by likewise View Post

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Thanks for your response, it did come as a bit of a shock to be honest, I don't really usually deal with this kind of thing myself (I leave the accountant to do stuff) and its the first time ive worked in the public sector. I am far more concerned about the take home pay, but as things stand I think ill be looking for a different gig in the private sector or go permanent....

And that's what many of us have done. The only problem you have is there is going to be a lot of people doing the same in a very short timescale.

Just in case you need to keep your options open here is a thread to read about Umbrellas.
http://forums.contractoruk.com/publi...-umbrella.html

Here is the Public Sector forum where all the discussions are..

Public Sector IR35

Things you need to watch out for are...

Being in the same gig inside after April. If you are inside after HMRC would be happy to come and argue you should have been inside all along.
Last payment dates. There are some discussion about any payments AFTER April being hit by this regardless of when you worked it

Plus lots of other interesting discussions about the whole sorry carry on.

The comment about leaving this stuff to your accountant worries me though. He doesn't your financial stuff as a service to you, not runs your company and advises you of what's happening at your clients. You should be all over this and go to them for some advice only really.

**SimonMac** · 14 February 2017, 14:41

Originally posted by likewise View Post

My agency has just informed me that on 6th of April im likely going to have to use an umbrella company for the public sector contract ive just started.

Can you tell us which agent you are with, its good to hear that they are giving you time to get things sorted, not sure how good it is saying everyone has to go down the brolly route (although this makes sense as it's the easiest thing for them)

**Patrick@Intouch** · 14 February 2017, 14:45

The advice that you have been given at around £680 to £730 as a take home pay sounds about right without looking at your personal circumstances.

It may be worth discussing this with your end client, in particular concentrating that discussion around your working practices as without assessing your contract I can't see how anyone could arrive at the conclusions that a) You are going to be found to be caught by the new public sector off payroll worker regulations and b) therefore may want to consider an Umbrella solution.

It is your end client who will provide information to the fee payer (agency) about your status but maybe the agency don't want the risk or the legwork.

You could either discuss an increase to your current day rate or look at contracts in the private sector as alternatives.

**likewise** · 14 February 2017, 15:12

Originally posted by northernladuk View Post

And that's what many of us have done. The only problem you have is there is going to be a lot of people doing the same in a very short timescale.

Just in case you need to keep your options open here is a thread to read about Umbrellas.
http://forums.contractoruk.com/publi...-umbrella.html

Here is the Public Sector forum where all the discussions are..

Public Sector IR35

Things you need to watch out for are...

Being in the same gig inside after April. If you are inside after HMRC would be happy to come and argue you should have been inside all along.
Last payment dates. There are some discussion about any payments AFTER April being hit by this regardless of when you worked it

Plus lots of other interesting discussions about the whole sorry carry on.

The comment about leaving this stuff to your accountant worries me though. He doesn't your financial stuff as a service to you, not runs your company and advises you of what's happening at your clients. You should be all over this and go to them for some advice only really.

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Thanks for the info, ill have a good look at them links tonight.

Fortunately the agency I work with on this one are quite good, they have assured us 100% that they will pay into our ltd company business bank accounts for any work done prior to 6th April which they should as well. I am also pushing for a completely new contract from them for the remainder of the project after the 6th of April so that it is not a continuation of the previous one under my limited company and so far it looks good, the agency are willing. If I am to continue working here (and it wont be for long probably given the loss of pay) then I will have a new contract for the remainder of this project im working on and this will be paid via umbrella.

I am worried that this could go to the private sector though, literally this was the first I had heard of this at the end of last week when the agency told us. If this does go to the private sector then doing contracting will be a thing of the past for most people, unless companies start increasing their rates massively, which I doubt. Another point, haven't the government actually thought that this might affect councils, the NHS etc....who rely on a lot of contractors to do short migration projects etc... ?? suddenly them contractors will not be available because it wont be worth it, all the government seems to think about it lining the tax coffers and not what is in the best interest of public services.

Public sector.... switch to umbrella, really?