With all this umbrella lark, wouldn't it be wise to use a service based in the Isle of Man - for obvious tax benefits...
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Which Umberella Company?
- Thread starter TheDean
- Start date
Soldato
well i get paid weekly, they charge me £28 a week, when i work. you can go monthly and its less..
That seems more than average?!
Caporegime
Can't do that without the contract being Manx
You can, but, you are asking for investigation
Also, there were suggestions that this sort of thing was going to get screwed by making any registered companies outside the UK pay a stupid amount of tax! no idea if it will happen though..
Soldato
umbrella companies want a cut of your pay.
they also make you pay ENI which I'm pretty sure they are meant to pay themselves.
When I was contracting I lost nearly 1/3 of my salary to PAYE, ENI, and NI payments becuase I was using an umbrella company.
Start your own Ltd company if you can. It doesn't cost much and you will save a lot of cash in the long run.
they also make you pay ENI which I'm pretty sure they are meant to pay themselves.
When I was contracting I lost nearly 1/3 of my salary to PAYE, ENI, and NI payments becuase I was using an umbrella company.
Start your own Ltd company if you can. It doesn't cost much and you will save a lot of cash in the long run.
Soldato
OK usual disclaimer....I work for a brolly company.
Anyway if you are new to contracting I would always go brolly in the first instance. Contracting isn't for everyone so this way you can try it out with minimum fuss.....you can move onto LTD although we have contractors who have stuck with us for 8 years so we must do somethng right.
Watch out for brollies who charge you additional fees for processing expenses, remember expenses are what reduce your tax and NI liability.
Also cheap doesn't always mean better! Check out contractorUK for more recommendations.
Employers NI is paid from your invoice value, remember that. Employers NI is 12.8% of taxable gross therefore if you are paying a brolly £30 a week and earning £800 a weeek there is no way that the brolly itself could stand the cost. They aren't dipping out of this responsibility it's all worded and laid out in the contract.
When an agency or end client give you a daily or hourly rate then take 12.8% off to make sure you are happy.
Any questions feel free to ask! Also stay away from schemes that sound too good to be true...in the end they will be and the last think you want is Hector giving you a probe!
Anyway if you are new to contracting I would always go brolly in the first instance. Contracting isn't for everyone so this way you can try it out with minimum fuss.....you can move onto LTD although we have contractors who have stuck with us for 8 years so we must do somethng right.
Watch out for brollies who charge you additional fees for processing expenses, remember expenses are what reduce your tax and NI liability.
Also cheap doesn't always mean better! Check out contractorUK for more recommendations.
Employers NI is paid from your invoice value, remember that. Employers NI is 12.8% of taxable gross therefore if you are paying a brolly £30 a week and earning £800 a weeek there is no way that the brolly itself could stand the cost. They aren't dipping out of this responsibility it's all worded and laid out in the contract.
When an agency or end client give you a daily or hourly rate then take 12.8% off to make sure you are happy.
Any questions feel free to ask! Also stay away from schemes that sound too good to be true...in the end they will be and the last think you want is Hector giving you a probe!
Soldato
*does double take*
TheDean posting a serious thread?!
TheDean posting a serious thread?!
Soldato
Soldato
Close but no cigar!
Associate
I've just joined Parasol so will let you know how it goes, aren't they Warrington as well . Same boat really, first contract and just getting my feet wet, not sure it will suit me yet but need to at least try it.
. Same boat really, first contract and just getting my feet wet, not sure it will suit me yet but need to at least try it.
Soldato
