Advice needed - have to change umbrella for new contract

[IrnBru]

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).

If I refuse then couldn't that affect the chance of me getting the contract? Would they then offer to someone else who would take one of the umbrella companies?
As this new contract is only for 3 months I'm hoping I really don't have to go through this all the time! One day, I will go Ltd..

[LisaContractorUmbrella]

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

How do you mean - sort out? If you have two jobs at the same time one of them will always have to be BR or D0 tax code because you can't have your tax free allowance twice - the new umbrella company would update the tax code once the OP had moved over and was able to provide them with a P45

[Craig at Nixon Williams]

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).

That would only be temporary until the tax code gets sorted out...if it gets done right then the overall amount of tax should be correct by the end of teh tax year.

Craig

[LisaContractorUmbrella]

If I refuse then couldn't that affect the chance of me getting the contract? Would they then offer to someone else who would take one of the umbrella companies?
As this new contract is only for 3 months I'm hoping I really don't have to go through this all the time! One day, I will go Ltd..

It all depends how badly they want your skills tbh - if you have rare skills in a sought after area then they probably won't try too hard to make you move

[LisaContractorUmbrella]

That would only be temporary until the tax code gets sorted out...if it gets done right then the overall amount of tax should be correct by the end of teh tax year.

Craig

Yes, until he moves to a single employer and they can then apply the code on his P45

[Craig at Nixon Williams]

One day, I will go Ltd..

Out of my own curiosity, what is the main thing that has stopped you from going Ltd previously?

Craig

[IrnBru]

Thanks for the quick advice folks! I will speak wit the agency first to see if they will accept the umbrella company I am with just now. If that fails then I will just have to choose another one..

[IrnBru]

Out of my own curiosity, what is the main thing that has stopped you from going Ltd previously?

Craig

I am new to the contracting, only started in March this year. Umbrella was the easier option for sorting out tax , insurance, etc.

[LisaContractorUmbrella]

I am new to the contracting, only started in March this year. Umbrella was the easier option for sorting out tax , insurance, etc.

A very sensible move

[TheFaQQer]

Make sure you account for expenses correctly. If you no longer have the intention to conduct multiple projects at different locations, then you can't claim travel etc. because you aren't a mobile worker.

Likewise if you are only planning to work on the one project for the new umbrella, you shouldn't be claiming expenses because that one place is your permanent place of work.