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Agency or umbrella company - advice please
Rufty1
Posts: 108 Forumite
Hello everyone, your wisdom please?
My fiance has just been offered a job after being unemployed for 18months - yipppeeeeee.
It is a one year contract starting later in September. The agency has offered for him to be paid via an Umbrella company and we are not sure whether to go for that or stick with being paid by the agency, or be self employed, setting up as a company and use an accountant. We'd like to know all the pros and cons please - if you would be so kind as to take the trouble.
I'll add some details:
Salary is £39k for the year. He has received no income this tax year (not even any benefits). So we would expect a tax rebate next April.
He will be paid weekly.
We have a holiday planned in December. I've seen on here various options on what the Umbrella company might do about holiday pay (eg subtract at source at 12% then pay it but taxed at 20%?), but don't know what is correct. What would he pay with the other options?
What would be claimable? We didn't think you could claim mileage if you are driving to your place of work???
He'll likely need a new PC, printer, office materials - could we make a claim on these?
What about NI - employer and employee??
The Umbrella company would charge £25 a week.
What else should we look out for?
What would he expect to take home each week under each option?
Very many thanks!
I have seen similar posts but didn't want to hijack anyone else's.
My fiance has just been offered a job after being unemployed for 18months - yipppeeeeee.
It is a one year contract starting later in September. The agency has offered for him to be paid via an Umbrella company and we are not sure whether to go for that or stick with being paid by the agency, or be self employed, setting up as a company and use an accountant. We'd like to know all the pros and cons please - if you would be so kind as to take the trouble.
I'll add some details:
Salary is £39k for the year. He has received no income this tax year (not even any benefits). So we would expect a tax rebate next April.
He will be paid weekly.
We have a holiday planned in December. I've seen on here various options on what the Umbrella company might do about holiday pay (eg subtract at source at 12% then pay it but taxed at 20%?), but don't know what is correct. What would he pay with the other options?
What would be claimable? We didn't think you could claim mileage if you are driving to your place of work???
He'll likely need a new PC, printer, office materials - could we make a claim on these?
What about NI - employer and employee??
The Umbrella company would charge £25 a week.
What else should we look out for?
What would he expect to take home each week under each option?
Very many thanks!
I have seen similar posts but didn't want to hijack anyone else's.
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