Advice needed - have to change umbrella for new contract

[IrnBru]

Hi,

I am currently on a contract which ends 31st July. I have managed to get myself another contract starting 1st August.

Now the issue is that on my current contract I am with an umbrella company (say xyz) and my paymebts are 30 days in arrears so I will be receiving the payments for July throughout August.

Now with my new contract the agency has asked me to go with one of their recommended umbrella companies, which means I will need to sign up to one!

Has anyone been with 2 umbrella companies at the same time before?If I am to apply for a p45 from my first umbrella company will I still receive payments or will I need to wait until end of august?

Thanks.

[northernladuk]

I have a really out there, blue sky helicopter idea. It's new, never been thought of before and might be a bit complex but....

Have you thought about speaking to you umbrella to see how they will deal with this first?

[IrnBru]

Yes I have spoken to them on a online chat, not giving any major details away with them but just for the general question.

The guy said that there wouldn't be any charge for leaving and that if I applied for a p45 early then I wouldn't get any remaining payments! So they said I'm best to get p45 end of august and stick out with the 2 umbrella companies for the first month.

Just wanted to see if there were any other views on this?

[Craig at Nixon Williams]

It will just be the same as having two employments at the same time, there will be nothing to stop you from doing this however you might not be on the correct tax code whilst you are receiving payments from two sources. Once you have moved all of your income to the second umbrella you will need to speak to HMRC to ensure that the correct tax code is being used.

Hope this helps!
Craig

[IrnBru]

It will just be the same as having two employments at the same time, there will be nothing to stop you from doing this however you might not be on the correct tax code whilst you are receiving payments from two sources. Once you have moved all of your income to the second umbrella you will need to speak to HMRC to ensure that the correct tax code is being used.

Hope this helps!
Craig

Thanks. That's pretty much the idea I had in my head what I thought it would be like. I take it this would mean that with the new contract I will be getting heavier tax deductions? Even though I haven't really been in 2 jobs at the same time? Dull one.

[IrnBru]

I have a really out there, blue sky helicopter idea. It's new, never been thought of before and might be a bit complex but....

Have you thought about speaking to you umbrella to see how they will deal with this first?

I have spoken to the umbrella company I am with just now through an online chat. I never gave any details or company names just asked them a general question. They said that I would not be charged for leaving but if I take out the p45 early then I cannot get paid what I will be due for the remainder of the month! My best option will be to be with the 2 umbrella companies I guess...?

[Craig at Nixon Williams]

Thanks. That's pretty much the idea I had in my head what I thought it would be like. I take it this would mean that with the new contract I will be getting heavier tax deductions? Even though I haven't really been in 2 jobs at the same time? Dull one.

Your tax code will be wrong initially - you may suffer more tax or maybe less...either way, once you have left the first umbrella and got your P45 you will be able to get HMRC to issue a correct coding notice so that the tax sorts itself out.

Craig

[LisaContractorUmbrella]

Why not refuse to change umbrella companies??? If you work on 2 employments at the same time, your tax free allowance can only be applied to one so you will pay basic rate tax on the other through a BR or D0 tax code (20% or 40% on all your income).

[LisaContractorUmbrella]

I have a really out there, blue sky helicopter idea. It's new, never been thought of before and might be a bit complex but....

Have you thought about speaking to you umbrella to see how they will deal with this first?

You have such a way with words NLUK

[northernladuk]

Bearing in mind (s)he is employed by the Umbrella could they not sort out his/her tax code for her/him?