New contractor role - umbrella company please help

makeyourdaddyproud

You've not understood. So if I'm told to set up a ltd co on the basis of a six month contract and there's no work from that that point then what is the point?

For the purposes of a short term view of contracting then ltd co is entirely unsuitable.

You will still have to audit accounts for the full year, complete IR. mandated beauroracy (paye forms), annual filing fees and that doesn't change if the tenure is short.

If you are intending in setting up a biz that involves employing people with multiple client receipts then that is the only reason to use a ltd co.

HappyMJ

makeyourdaddyproud wrote: »

You've not understood. So if I'm told to set up a ltd co on the basis of a six month contract and there's no work from that that point then what is the point?

For the purposes of a short term view of contracting then ltd co is entirely unsuitable.

You will still have to audit accounts for the full year, complete IR. mandated beauroracy (paye forms), annual filing fees and that doesn't change if the tenure is short.

If you are intending in setting up a biz that involves employing people with multiple client receipts then that is the only reason to use a ltd co.

If you get a permanent PAYE job then close the company down. It's easy enough. 6 months would be more than enough for me...I've set up a company before for a 4 week contract then closed it down.

MoneySavingMission

thanks for replies. Just to clarify, my redundancy was from a completely different company than the one I will be contracting for so no legal issue there.

Only intend short-term contracting so have been advised umbrella company is quickest way.

I understand that the company i'll be working for have no employee obligation to me re pension / sick pay / holiday pay etc. So should the umbrella company, as my technical employer, pay me any holiday accrued at basic accrual rate approx 12%?

makeyourdaddyproud

MoneySavingMission wrote: »

thanks for replies. Just to clarify, my redundancy was from a completely different company than the one I will be contracting for so no legal issue there.

Only intend short-term contracting so have been advised umbrella company is quickest way.

I understand that the company i'll be working for have no employee obligation to me re pension / sick pay / holiday pay etc. So should the umbrella company, as my technical employer, pay me any holiday accrued at basic accrual rate approx 12%?

Absolutely, and in case I didn't make myself clear that ltd co is a poor vehicle for anything other than bona fide multiple employee, multiple client operations:

http://pointbeing.net/weblog/2012/02/contractors-a-limited-company-is-not-tax-efficient.html

scheming_gypsy

MoneySavingMission wrote: »

I understand that the company i'll be working for have no employee obligation to me re pension / sick pay / holiday pay etc. So should the umbrella company, as my technical employer, pay me any holiday accrued at basic accrual rate approx 12%?

it's all included in the higher rate you're getting as a contractor. So you pretty much get it included as part of your wage and nothing when you take a week off.

directdebiter

MoneySavingMission wrote: »

Hello
I have been offered a contracting role post redundancy from prev perm role. Don't know much about contracting other than i have to choose a firm to operate this contracting operation through.

* I will be paid a daily rate. Are you entitled to any kind of holiday pay when you are in a contracting role?
* How much approx do umbrella companies charge?
* I understand there are contracting fees which can be offset against tax liability. Travel, Lunch,Accomodation, Elec Equipment. What are the others? How does this work? E.g. My train fare is £100 a week, can I claim back the tax % of this or do they add to personal allowance before they can deduct tax?

Please help me gain a quick insight into this new world!

I have used contractor umbrella, parasol and giant. They are big umbrella companies who should be able to give you an individual quotation. best give them a call. their admin costs will vary.
Regarding the other posts - I would wait before you go Ltd co route. Umbrella is quick and easy for you now until you establish contracting is for you and understand what you need to do with a Ltd Co.

I strongly suggest looking at https://www.contractoruk.com which is a authorative contracting website with loads of first timer guides and a contracting forum for asking questions.

getmore4less

MoneySavingMission wrote: »

thanks for replies. Just to clarify, my redundancy was from a completely different company than the one I will be contracting for so no legal issue there.

Only intend short-term contracting so have been advised umbrella company is quickest way.

I understand that the company i'll be working for have no employee obligation to me re pension / sick pay / holiday pay etc. So should the umbrella company, as my technical employer, pay me any holiday accrued at basic accrual rate approx 12%?

remember you only get paid what you earn so holiday pay comes from your money you don't get extra from the umbrella

also worth checking they get the tax/ni correct you need the hmrc table and calculator for that.
to cover employer ni and holiday you need at least 26% more than the regular rate.

don't tell the umbrella this might be your only job with them it could stop some expenses

keyser666

scheming_gypsy wrote: »

With Paystream i can claim £5 if i'm out of the house for under 10 hours or £10 if i'm out for over 10 hours. Can also claim for breakfast if I'm out before 6am.

You can do that with any of the umbrella companies as long as legitimate.

To the OP, you have many options, Umbrella company, offshore Umbrella, LTD company, offshore LTD blah blah blah.

If short term contract and you do not normally do contracting and have no intention of really doing so after this one then Umbrella would prob be the easiest. If you are going to be contracting long term then probably your best bet is get over to the contracting forum. It is very cliquey over there though, more so than MSE but their advice is pretty solid.

MoneySavingMission

I have received an illustration and net pay only equates to 71% post umbrella fees, employer and personal Ni and tax etc. This seems low. Can you please tell me your ratio of net pay with your umbrella company?

scheming_gypsy

I'm not sure off the top of my head but on £16.16 an hour for 37.5 hours, I take home on average £425.66. That's claiming £30 expenses.

As mentioned earlier I use http://www.paystream.co.uk/umbrella-company there's a basic calculator on the right to give you an idea of take home. It's a bit more basic than it used to be but gives a rough idea.
I submit my timesheet to the agency on Monday, they pay Paystream / My Max on Wednesday, I get my pay slip and text confirming how much i'll be paid, on the Thursday and it's in the bank Friday morning (although sometimes everything comes through a bit later but still paid on Fridays).