New job - 6 month contract - umbrella company

DotMatrix

I've recently managed to secure a new job in the shape of a 6 month contract. My daily rate will be £275. I estimate I will spend around £180 per week on food and travel.


I've been asked to look at an umbrella company with the view to ensuring I receive more of my pay.

Anyone have experience with dealing with an umbrella company.
If so how much can I benefit if I chose to go the umbrella route.
I'm not sure if it is worth it and worry about any hidden costs.

I intend to only contract for 6 months before looking for a permanent position.

Thanks in advance.

Dave_the_Ginger_Cat

For that day rate and expenses level, I would do this by Self Assessment. You won't be liable for VAT as far as I can tell, and unless your hiring firm insists that you bill as a limited entity then you have the option to choose.

Downsides would be that you have to invoice yourself, which can be a pain

goonarmy

I used giant as my umbrella company and effectively worked PAYE. They took care of everything including expenses and their own fee as an expense. However if you earn over a certain threshold its better to start your own company. For your short term contract it may be easier to use an umbrella but probbably slightly costlier.

Gaz83

Umbrella companies? Come on guys, has no-one else played Resident Evil? This will not end well!

lkmc01

Do you mean £275 a week?

franklally

I use these and are very happy with them - they have a flat charge of £12.50 per week - their information pages are very useful re your liability for employer and employees NI liability etc

getmore4less

I did my contract last year through an umbrella.

cost was ok they handled the PAYE and expenses(a pain with reciepts), they did get a bit shirty when I went through the calculations with a fine tooth comb and they were wrong.

One thing I did was pool expenses till they hit the max and put them in on a single week that way you save a bit more NI.

I wanted them to pay me(my money) as min wage weekly then a big bonus to get more savings on the 12%-2% NI band no go.

remember you will be taxed as if this is the wage for the full year so if you don't work the rest of the year you will be due a tax refund.


If planning to work all year I would probably go Ltd on that rate, the accountant cost is about the same as Umbrella and you can keep more of your money as you can pay less NI overall.

goonarmy

lkmc01 wrote: »

Do you mean £275 a week?

Daily rate, so im guessing not.