Umbrella - paying part of rate as expenses?

[sifr]

In conversation with a company who have offered me a position. Thats the good news...

But they are offering the rate in 4 flavoursthrough an umbrella, their nominated umbrella and i have to choose.

Unfortunately 2 of the 4 options i just cant understand the legitimacy of what they are offering

Regardless, the top line rate remains the same at £X.

Option 1 is £X per hour at 40 hours per week
Option 2 is £X per hour at 45 hours per week

So far so good

Option 3 is £Y rate and £Z expenses per hour (which together total £X)
Option 4 is £A rate (A is less than Y) and £B expenses (B is more than Z) - which together total £X

The illustrations show the take home for options 3 and 4 to be in excess of options 1 and 2, and something doesnt seem right. How can they pay you an 'expenses' hourly rate to increase your take home?

Ive had a quick search and couldnt find anything obvious. Anyone else heard of this type of arrangement? and is it a legit way to pay?

Cheers

S

[eek]

What is the umbrella's name?

As it's possible* for subsistence expenses to be available if you are not subject to supervision direction or control (and you need to be subject to none of them to qualify).

* whether it's sane is a different matter - my opinion is that passing that test is harder than a lot of umbrellas claim.

[sifr]

Option 4. The expenses £B rate is 20% of £X

its Azure..... I’d never heard of them...

[malvolio]

Fixed rate expenses... Interesting thought, but they aren't expenses as far as HMRC are concerned 99% of the time. As a rule of thumb if you make money on expenses you're doing something wrong.

I also don't understand the 40/45 hour option. Why??

I would walk away rather quickly. YMMV of course.

[eek]

Fixed rate expenses... Interesting thought, but they aren't expenses as far as HMRC are concerned 99% of the time. As a rule of thumb if you make money on expenses you're doing something wrong.

I also don't understand the 40/45 hour option. Why??

I would walk away rather quickly. YMMV of course.

Advance offer such a scheme Umbrella company for contractors and temporary workers | ADVANCE - and it is based on a fixed amount per week because believe it or not that's the only thing HMRC rules allow. The scheme is really designed for CIS workers so you will find it more at umbrellas that focus on that market.

As for Azure - it's "accredited by Professional Passport" but unless Crawford has improved his validation a lot I wouldn't trust it given that he passed Umbrellaworx and other dodgy as f*** firms in the past.

[malvolio]

Advance offer such a scheme Umbrella company for contractors and temporary workers | ADVANCE - and it is based on a fixed amount per week because believe it or not that's the only thing HMRC rules allow. The scheme is really designed for CIS workers so you will find it more at umbrellas that focus on that market.

As for Azure - it's "accredited by Professional Passport" but unless Crawford has improved his validation a lot I wouldn't trust it given that he passed Umbrellaworx and other dodgy as f*** firms in the past.

Ah, yes, forgot the CIS variations... But I agree about PP accreditation.