how to work out if an umbrella company is dodgy: holiday pay etc

**WTFH** · 28 January 2020, 13:08

It sounds dodgy.

What is the name of the broker, and what is the name of their suggested umbrella?

**malvolio** · 28 January 2020, 13:32

As a rule of thumb, don't go with any umbrella that charges a percentage of your rate. They all have the same work to do, so should be charging about the same amount regardless of your gross.

Equally, don't go a with a broker, do your own research and comparisons against a sensible baseline (Clarity or SJD/Contractor Umbrella, for example).

**lucyclarityumbrella** · 28 January 2020, 13:45

Originally posted by eskimalita View Post

Hi
broker's umbrella deduct £244 p/week (17% of gross). Take home pay £1191 per week including holiday.
FCSA umbrella deduct £526 p/week (36.7% of gross). Take home pay £909 per week including holiday.

Take Home should be as follows:

Weekly Gross Contract Rate £1,435.00

Employer National Insurance £150.09
Employment Tax £6.27
Employee National Insurance £101.35
Employee Tax £261.00
Total All Tax £518.72
Margin £25.00

Total Net Income £891.28

Originally posted by eskimalita View Post

Can anyone assist with how I calculate the holiday, and what other red flags I am missing with the umbrella recommended by the broker, please? I am new to this. The FCSA umbrella (Giant) seem more realistic.

Holiday is included within the Gross figure ie the £1,435.00, stating it includes holiday is taking it out of the gross figure and paying it straight back within the net figure, so nothing to calculate as such. If you want to see the breakdown, best to ask for a mock payslip with the holiday pay as rolled up on the payslip. If you choose to accrue then this can be done at 12.07% - again from the Gross figure.

**cojak** · 28 January 2020, 13:54

Yes, treat ANY cold-calling Umbrella as dodgy.

Very simple.

how to work out if an umbrella company is dodgy: holiday pay etc