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Your experience with Umbrella.co.uk (insider IR35 contract)

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    Your experience with Umbrella.co.uk (insider IR35 contract)

    Hi CUK!

    I've trawled through the forums to see specific feedback on Umbrella.co.uk and can't find any. I can see them mentioned in lists on posts with other firms, but no direct feedback/experience from people that have used them.

    I've spoken to them and got the figures across, which is inline with the figures shown on an Inside IR35 calculator. I don't want anything dodgy or to be avoiding any tax and I want the payslip to show this as salary (not a mix of commission/loans/holiday or whatever BS others are doing for tax purposes).

    I want to be with a legitimate Umbrella - the main things I'd like are:

    1. Legal - I don't want to be stung with a large tax bill in the future.
    2. On time payments - I'd like to be paid ASAP (I've been told this will be the same day as the agency pay them, which is monthly)
    3. In the future, I'd like to make pension contributions to avoid (I believe gross ~160k, pre tax deductions are ~24k/year. If I'm on 136k I'd like to SS ~36k into a pension to be below the 100k limit and not lose my personal allowance)

    I'm not sure if there's anything else I should be looking for. I've spoken to Umbrella.co.uk and they've assured me they meet the above 3 points. I'd love to hear from anyone that has used their Umbrella services before and if you have any positive/negative feedback to share.

    Thanks!

    #2
    I'm going to ignore whether umbrella.co.uk is a company I would use - a lot of the contractors round here use Clarity and to a lesser extent (based on good reviews) NASA.

    But your pension bit is wrong.

    You want an umbrella company that does salary sacrifice to your SIPP pension provider (if you have one) as salary sacrifice allows you to maximise the amount of money paid into the pension because the money is taken before any Employment costs are deducted (except for holiday pay and the umbrella's margin). That will allow you to pay £40,000 a year (minimum*) into the scheme reducing your pay to £120,000.

    * If you haven't used all your allowance over the past 3 years it may be possible to contribute more than £40,000 a year but you will need to speak to the umbrella firm and confirm that's OK before they do so.



    merely at clientco for the entertainment

    Comment


      #3
      Originally posted by eek View Post
      I'm going to ignore whether umbrella.co.uk is a company I would use - a lot of the contractors round here use Clarity and to a lesser extent (based on good reviews) NASA.

      But your pension bit is wrong.

      You want an umbrella company that does salary sacrifice to your SIPP pension provider (if you have one) as salary sacrifice allows you to maximise the amount of money paid into the pension because the money is taken before any Employment costs are deducted (except for holiday pay and the umbrella's margin). That will allow you to pay £40,000 a year (minimum*) into the scheme reducing your pay to £120,000.

      * If you haven't used all your allowance over the past 3 years it may be possible to contribute more than £40,000 a year but you will need to speak to the umbrella firm and confirm that's OK before they do so.


      Thanks, yes I want to salary sacrifice, apologies, I should've the words rather than just "SS" in my post.

      Could you go into a little detail as to whether you would use it or not? That's what I'm interested in! I'd assume you've had a negative experience / know others who have? I do have ~4 I can choose from, but there preferred is Umbrella.co.uk and I didn't want to make the same post as others (with the whole list).

      I've seen Clarity suggested alot, but they're a large agency and Clarity isn't on there list

      Comment


        #4
        Originally posted by CS Contracting View Post

        Thanks, yes I want to salary sacrifice, apologies, I should've the words rather than just "SS" in my post.

        Could you go into a little detail as to whether you would use it or not? That's what I'm interested in! I'd assume you've had a negative experience / know others who have? I do have ~4 I can choose from, but there preferred is Umbrella.co.uk and I didn't want to make the same post as others (with the whole list).

        I've seen Clarity suggested alot, but they're a large agency and Clarity isn't on there list
        Cynical question - why is it their preferred agency - how much did umbrella.co.uk pay to be No 1 on their Preferred Supplier List?

        As for getting a decent review of any umbrella firm it's difficult because the only time you discover things have gone wrong is when their day to day process fails.
        merely at clientco for the entertainment

        Comment


          #5
          Originally posted by eek View Post

          Cynical question - why is it their preferred agency - how much did umbrella.co.uk pay to be No 1 on their Preferred Supplier List?

          As for getting a decent review of any umbrella firm it's difficult because the only time you discover things have gone wrong is when their day to day process fails.
          I’d assume they’re the ones offering the agency the largest incentive/referral fee.

          They also referred them to me for accountant services, but I went with a local contractor accountant for almost half the price instead.

          They’re selling Umbrella as the one they have the best relationship with, so direct connections in the event of any issues.

          I’m less bothered about getting the lowest priced service and more interested in staying above board in terms of paying the right taxes and having the payslip display the breakdown correctly.

          Umbrella want £110/month - but my inside day rate will be ~700-750, so if it’s £30/40 extra a month without any issues, I’m more than happy to pay the extra for the convenience. More than happy to be told I’m being naive though and Umbrella aren’t the choice to go with.

          Comment


            #6
            Originally posted by CS Contracting View Post

            I’d assume they’re the ones offering the agency the largest incentive/referral fee.

            They also referred them to me for accountant services, but I went with a local contractor accountant for almost half the price instead.

            They’re selling Umbrella as the one they have the best relationship with, so direct connections in the event of any issues.

            I’m less bothered about getting the lowest priced service and more interested in staying above board in terms of paying the right taxes and having the payslip display the breakdown correctly.

            Umbrella want £110/month - but my inside day rate will be ~700-750, so if it’s £30/40 extra a month without any issues, I’m more than happy to pay the extra for the convenience. More than happy to be told I’m being naive though and Umbrella aren’t the choice to go with.
            Depends on the other options on the agency's PSL...

            But for reference Clarity is £95 and Nasa about £95 including payment into a SIPP pension.

            So you can see where some of that £110 is probably going...

            Also I cannot see how an agency should have any hassle with an umbrella - the task of an umbrella is on the whole a very simple - spot that the invoice has been paid and run the payroll system before redirecting the money in the appropriate directions.
            Last edited by eek; 16 May 2022, 14:50.
            merely at clientco for the entertainment

            Comment


              #7
              Originally posted by eek View Post

              Depends on the other options on the agency's PSL...

              But for reference Clarity is £95 and Nasa about £95 including payment into a SIPP pension.

              So you can see where some of that £110 is probably going...

              Also I cannot see how an agency should have any hassle with an umbrella - the task of an umbrella is on the whole a very simple - spot that the invoice has been paid and run the payroll system before redirecting the money in the appropriate directions.
              They're quite a large Agency, I'd assume they stick to their "pre-approved" list. The others were, Parasol, JSA, Payme, Paystream.

              As I say, I'm not against paying an extra £20/month for the ease (if it is infact a good reputable Umbrella)

              Comment


                #8
                Is there a reason you are only looking at umbrella.co.uk?

                I use paystream and find them to be good.

                Comment


                  #9
                  +1 for paystream. I'm outside at the moment, but if I was forced back inside I'd definitely go with them again.
                  And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

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