Employment under Umbrella -- How much will I be paid?

brendon

I was recently contacted by a recruitment agency to undertake a 6 week contract, paying £100 per day. I've had the interview, and accepted the job, but I'm a little uncertain about the umbrella arrangement.

I worked out I'll get £500 per week, so Employer's NI due is (500 - 153) * 13.8% = £47.88 per week. Expenses for train and lunch will be £80 per week -- so I'll get 20% * £80 = £16 tax offset per week. Say the umbrella company takes £30 per week.

So that's £438.12. Factor in holiday pay, salaried equivalent would be £438 * 11 / 12 = £400 per week. So the salaried equivalent would be £20,800 per year before tax.

Have I done this calculation correctly? I've read some horror stories about umbrella companies taking more money than expected. Is there anything that I haven't thought of?

Is there anything I should know about?

(Sorry if this is obvious. I've just left uni and this is my first job, I feel like I've rushed into it without thinking.)

deedee71

try putting your figures into https://www.contractorumbrella.com. it's has a good calculator and lots of useful info.

Majestic12

You will get same as PAYE net salary, less the umbrella commission.

So your pay slip will be less than PAYE from a regular employer, however you can claim back expenses like food and subsistence, and travel. Therefore making your take home pay higher.

Please talk to your umbrella about what you can claim

Prothet_of_Doom

Majestic12 wrote: »

You will get same as PAYE net salary, less the umbrella commission.

So your pay slip will be less than PAYE from a regular employer, however you can claim back expenses like food and subsistence, and travel. Therefore making your take home pay higher.

Please talk to your umbrella about what you can claim

45p a mile from home, PPE, lunch, coffee, stationary. Anything that you consume, after leaving home.